Qualcomm should license the use of its chip technology to competitors
District Court Judge Lucy Koh, following a US Federal Trade Commission (FTC) lawsuit from Qualcomm has issued its vote. Following this ruling, Qualcomm must allow its competitors, including Intel, to exploit patents related to wireless technologies. Anecdotal evidence in Qualcomm documents shows that a modem chip is a core component of a mobile phone, while the use of these chips is part of the implementation of mobile phone standards, Koh says. Qualcomm cannot discriminate against modem chip suppliers.
Qualcomm is the world’s largest provider of mobile phone chips and has created the technologies necessary to connect phones to mobile networks. This company owes a significant part of its income to the issuance and licensing of these inventions to hundreds of different device manufacturers. Consider that these costs are charged based on the value of the phone and not its components. Since Qualcomm has patents related to 3G and 4G phones – As well as other features, such as the software that uses them – any phone maker that connects a device to newer networks has to pay a licensing fee, even if they don’t use Qualcomm chips.
Qualcomm It faces regulatory hurdles around the world on how to license its wireless technologies. This includes a multi-year dispute with its former major customer, Apple, as well as regulatory hurdles in South Korea and China. In the United States, the FTC accused Qualcomm early last year of maintaining a monopoly, charging high royalties and weak competition.
The FTC’s trial against Qualcomm is scheduled for next year. The FTC and Qualcomm asked the court last month to delay its decision so they could settle their lawsuit through negotiations.