Qualcomm is on the verge of a major financial crisis following a $1 billion lawsuit filed by Apple for inflated royalty payments.

If recent reports are to be believed, it could be in a state of huge catastrophe if the payment continues to get delayed. 

According to the allegations levelled by Apple against the chipmaker, Qualcomm is alleged to have collected billions of dollars as royalties for technologies it is not associated with. The chip making company on its part has rejected this insinuation. 

"Apple has intentionally mischaracterized our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed and shared with all mobile device makers through our licensing program," says Don Rosenberg, Executive VP of Qualcomm.

The lawsuit happens to be filed at a time when Qualcomm is already in deep trouble with the Federal Trade Commission's (FTC) anti-trust lawsuit.

The regulators in Europe and the U.S. will examine the business practices of the company regarding its deep well of patents used in most of the wireless devices. Royalties from these patents contributes to about 80 percent of the company's pre-tax profit.

By: DocMemory
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