Legal battle between Apple and Qualcomm has turned rather for the worst, with Apple Inc now deciding to stop paying its contract manufacturers for the royalties they owe for the patented technology used.

This latest action has seriously impacted the chip makers quarterly call to its shareholders, effecting their projected bottom line in terms of sales revenue. “Apple is improperly interfering with long-standing agreements on licensees,” said Don Rosenberg, executive vice president and general counsel of Qualcomm.  “These license agreements remain valid and enforceable.  While Apple has acknowledged that payment is owed for the use of Qualcomm’s valuable intellectual property, it nevertheless continues to interfere with the contracts.

Qualcomm has insisted to charge percentage royalties for patents used in iPhones but Apple is not interested, in fact the device manufacturer has filed $1 billion lawsuits in various countries. On the decision to stop payment to manufacturers, Apple claims it did so until it knows what is the right correct amount determined when it goes to court. Qualcomm has also filed countersuits.

In the a statement issued by Qualcomm, it states that Apple has unilaterally declared the contract terms unacceptable; while it is the same terms that have applied to iPhones and cellular-enabled iPads for a decade.  And accuses Apple’s continued interference with agreements to which the company is not a party is wrongful and it is the latest step on a global attack on Qualcomm.  The Snapdragon chip maker has declared to vigorously defend its business model, and pursue the right to protect and receive fair value for its technological contributions to the industry.