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Texas Instruments

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sued

Qualcomm

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, alleging the wireless technology company is discounting CDMA licenses in a way that violates a contract between the two companies.

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The breach-of-contract suit in Delaware Chancery Court seeks an order requiring Qualcomm to adhere to a cross-licensing agreement and an injunction prohibiting Qualcomm from making false statements about its "rights and obligations."

The suit is the latest in a flurry of litigation between the two sides. Qualcomm filed a suit over the confidentiality of the December 2000 cross-license agreement in July. A Texas Instruments motion to dismiss it is still pending.

Texas Instruments said the latest complaint alleges Qualcomm was making improper deals with customers.

"We brought this action because we have received reports that Qualcomm is offering handset royalty discounts to handset manufacturers only if they purchase CDMA chipsets from Qualcomm," Texas Instruments said in a statement. "We are asking the Delaware court to enforce the terms of the agreement."

CDMA stands for code-division multiple access and is Qualcomm's algorithm for dividing up wireless spectrum. It licenses the technology to mobile-phone producers.

A Qualcomm spokeswoman said the company hadn't seen the suit.

In midday trading, Texas Instruments was up 28 cents, or 1.1%, to $23.73. Qualcomm was down a penny to $44.61.