Qualcomm saw a huge loss in one of many ongoing lawsuits this afternoon. The federal courts ruled that the company's modem patents should be licensed to competing chipmakers, which could weaken the chances of blocking the market.
This is a result of a lawsuit by the Federal Trade Commission against Qualcomm filed in early 2017. Regardless of whether Qualcomm used anti-competitive practices to maintain its monopoly on smartphone modems, the key to litigation is not ruled out here. The court, however, adhered to one question as to whether Qualcomm should license its standard essential patents to its competitors.
In this case, the court. Qualcomm agreed to two policies that it announced to offer certain patents for non-discrimination reasons. These patents were essential to wireless standards and agreed to the standards by licensing everyone to Qualcomm. The court looked at the contract and said it was "obvious" that Qualcomm was wrong. Qualcomm did not provide immediate response to the request.
If Qualcomm allows it to continue to maintain standard mandatory patents, the court will allow the company to "gain monopoly power in the modem chip market and limit competition implementation.
Qualcomm has ruled that it must acquire the necessary patents for its buildings: smartphone modems from competitors such as Intel. So far, Qualcomm has only offered licenses to companies that manufacture smartphones directly, and Qualcomm appears to be only when selling chips directly.
Companies like Intel are eager to compete with Qualcomm in this market, and their modem Which means that companies such as Apple and Samsung, who want to sell smartphones in large quantities, have to rely heavily on Qualcomm's chips.
That's bad news for Qualcomm, but the rest For example, Intel has already built a competitive modem, but it has never been as fast as Qualcomm. .
But without change, the amount that Qualcomm can charge for the patent. The FTC also charges the patent too high, despite the same agreement that requires Qualcomm to charge only a "reasonable" fee Apple has sued Qualcomm for the same problem.
Qualcomm faces a similar legal action all over the world, with Apple accusing it in several places for a hassle-free license fee, and Qualcomm Korea, Taiwan, the European Union and China.