Apple, Qualcomm lawsuit news, update: Qualcomm responds to Apple's allegations, will continue supplying chips to iPhone maker

Apple made waves last week when it filed a $1 billion lawsuit against Qualcomm due to the chip maker's alleged business practices, specifically when it comes to license royalties.

While most smartphone manufacturers have come to rely on Qualcomm for its Snapdragon mobile processors, Apple is known for manufacturing its own chips for its lineup of devices. However, Apple still relies on Qualcomm for its modem chips, especially for devices used in the United States.

Qualcomm, in turn, requires companies to obtain licenses for its cellular patents whenever a company wants to use their chips.

"For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with. The more Apple innovates with unique features ... the more money Qualcomm collects for no reason and the more expensive it becomes for Apple to fund these innovations," Apple said in a statement to Business Insider.

Apple's lawsuit was filed last Friday, Jan. 20, in the U.S. District Court for the Southern District of California. A copy of the 104-page complaint can be found on Scribd. Apple's lawsuit follows a complaint made by the Federal Trade Commission (FTC) earlier that week.

In response to the allegations, Qualcomm released a statement which calls Apple's claims as "baseless."

"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," said Don Rosenberg, executive vice president and general counsel for Qualcomm.

Furthermore, Rosenberg stated that Apple has been "actively encouraging regulatory attacks on Qualcomm's business" in various jurisdictions over the world as evidenced by the recent complaints it has received, including the one from the FTC.

Reports suggest that Qualcomm is in the process of deciding whether it will file a countersuit against Apple.

Despite the brewing war, it appears that it will be business as usual for the two companies. Recode has said that Qualcomm will continue to supply chips to Apple. Apple, along with Samsung and other suppliers, actually contribute to 40 percent of the chip maker's revenue.