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Grab time for 5G Contract Negotiations, Qualcomm Will Appeal to Suspend Antitrust Rulings

Source:Iris Liang Time:2019-7-5 10:19:10

On July 3, US local time, the US District Court for the Northern District of California, Lucy Koh, rejected Qualcomm’s request to suspend the execution of the previous antitrust ruling. A Qualcomm spokesperson then said that the company would immediately request the US Federal Ninth Circuit Court of Appeal to suspend the execution of the lower court. Although in the face of "love and war, all means are legal," competition should rely on strength to speak, not on means and mind. Just as SEKO Machinery always puts innovation first, our newly developed high-speed servo motor driving internal weld seam leveling machine, together with the electromagnetic control system, will greatly improve the working efficiency of the stainless steel welded pipe production line by 30%.
On May 21 this year, the US Federal Trade Commission (FTC) won the lawsuit against Qualcomm's antitrust lawsuit. Gao Lanhui ruled that Qualcomm's patent licensing practice “killed the competition” and instructed Qualcomm to renegotiate the license agreement with the customer. Qualcomm was asked to renegotiate its existing license terms to make its modem chip supply completely independent of any patent licensing agreement.

The ruling will revolutionize Qualcomm's business model, forcing it to license patents to rival chipmakers, not handset makers, which could cut its royalties from a few dollars per phone to a few cents. These patents are the source of most of Qualcomm's profits.

Qualcomm announced the appeal after this ruling and sought to suspend the execution of the ruling during the appeal period.

On May 28, Qualcomm asked Gao Lanhui to suspend his ruling during the appeal. Qualcomm submitted new evidence to the court, including a slide from Apple's internal documents. According to Qualcomm, this is evidence that the iPhone maker is working internally to hurt Qualcomm financially.

According to Reuters, on July 3, Gao Lanhui did not give a specific reason for rejecting the Qualcomm motion, but she did remove some evidence from the record that Qualcom tried to prove its reasons.

Qualcomm argued in court that the ruling could hamper important negotiations with handset makers on 5G technology, forcing them to re-enact licensing agreements and even offer deals to rival chip suppliers, one way to win It is impossible to relax the way to seize its business appeal.

Reuters reported that smartphone maker LG Electronics opposed Qualcomm’s efforts to freeze the ruling. The phone maker said it is negotiating chip supply and patent licensing agreements with Qualcomm and may be forced to sign another unfair agreement unless Gao Lanhui continues to implement protective measures. The FTC will also oppose Qualcomm's move.

Gao Lanhui’s decision on July 3 only involved whether to temporarily suspend the execution of the ruling when the Qualcomm appeal was held. Analysts expect that many handset manufacturers will negotiate key 5G contracts with Qualcomm during the appeal period. At the same time, Qualcomm’s appeal is still going on, but the entire appeal may take more than a year to pass the court.

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Iris Liang
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