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U.S. court: Qualcomm must license tech to competitors


(Reuters)  — A U.S. federal judge ruled on Tuesday that chip seller Qualcomm must license some of its technology to competitors such as Intel. The preliminary ruling came in an antitrust lawsuit against Qualcomm brought by the U.S. Federal Trade Commission in early 2017. The lawsuit is scheduled to go to trial next year. The preliminary ruling by Judge Lucy Koh in the U.S. District Court for the Northern District of California said that Qualcomm must license some patents involved in making so-called modem chips, which help smart phones connect to wireless data networks, to rival chip firms. Qualcomm and the FTC had jointly asked Koh last month to delay ruling on the issue for up to 30 days while they pursued settlement talks. Koh denied that motion on Tuesday. It was not immediately clear whether the ruling would affect the settlement talks. Qualcomm shares were down about 0.3 percent to $63.26 after the news. Qualcomm did not immediately return a request for comment. The FTC and Intel declined to comment. Settling with U.S. regulators would be a turning point for the San Diego chip firm, which has been defending its business model amid lawsuits from large customers such as Apple and Huawei, as well as dealing with regulatory challenges to its practices around the world. At issue in the civil litigation and regulatory disputes is whether Qualcomms patent licensing practices, when combined with its chip business, constitute anticompetitive behavior. Regulators in South Korea and Taiwan initially ruled against Qualcomm, but it has appealed the rulings and settled some of them. In August, Qualcomm settled with Taiwanese regulators for $93 million and an agreement to invest $700 million in the country over the next five years.

Judge: Qualcomm must license modem tech to rivals like Intel


It won't be allowed to wait for an antitrust settlement. Qualcomm isn't having much luck defending itself against the FTC's antitrust lawsuit. US federal Judge Lucy Koh has ruled that Qualcomm must license some of the patents in its cellular modems to rival chip manufacturers. Qualcomm and the FTC had previously asked Koh to delay the ruling for up to 30 days while the two sides negotiated a possible settlement, but the judge denied that motion. We've asked Qualcomm for comment. There's a good chance Qualcomm isn't happy about the move, though. The wireless chip firm is embroiled in a longstanding patent royalty dispute with Apple, and has even accused the iPhone maker of feeding trade secrets to Intel. Now, it might not have much choice but to supply some of those secrets to the competition, possibly including Intel and Samsung. And when Qualcomm has lost and settled some antitrust cases in other parts of the world, an FTC settlement might not provide much relief.