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 The Dominion of Design

Archive for December 20th, 2018

Another Attempt to Stifle Competition

Thursday, December 20th, 2018

Qualcomm’s Patent Litigation Campaign isn’t Really about Vindicating Intellectual Property Rights

Steven RodgersBy Steven Rodgers

Competition authorities around the world have repeatedly found Qualcomm’s licensing practices unlawful, yet Qualcomm continues to try to achieve the same results through a campaign of patent lawsuits. These lawsuits have been largely unsuccessful, and at best would reduce innovation and raise prices.

Qualcomm’s goal is not to vindicate its intellectual property rights, but rather to drive competition out of the market for premium modem chips, and to defend a business model that ultimately harms consumers. As we’ve noted before, in the last several years, Qualcomm has been fined nearly a billion dollars in China, $850 million in Korea, $1.2 billion by the European Commission and $773 million in Taiwan (later reduced in a settlement) for anti-competitive practices.

More: Qualcomm’s Rhetoric Pierced

Meanwhile, the U.S. Federal Trade Commission continues to pursue claims against Qualcomm in federal court for alleged violation of U.S. antitrust law. Just last month, the Northern California federal district court rejected Qualcomm’s arguments that it has a legal basis for its refusal to license its standards-essential patents to modem chip competitors. Judge Lucy Koh rejected Qualcomm’s strained arguments that its conduct has a basis in the rules of its standards bodies participation. She concluded that, “Qualcomm never attempts to explain how discrimination against modem chip suppliers is consistent with the stated purposes of the IPR policies.”

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