Federal Judge Rules Qualcomm Violated Antitrust Laws in Chip Monopoly Case
A federal judge rules that Qualcomm violates antitrust laws by charging excessive patent royalties and stifling competitors. The chipmaker strongly disagrees with the decision and plans to immediately appeal the ruling.
A federal judge rules that Qualcomm violates antitrust laws by charging unreasonably high royalties for its patents and eliminating competitors in the cell phone chip market. US District Judge Lucy Koh sides with the Federal Trade Commission after a five-month legal battle, stating that the tech giant engages in anti-competitive behavior to maintain its dominant market position.
To remedy the situation, Koh demands that Qualcomm renegotiate its licensing agreements with customers and license its patents to rival chip makers at fair rates. The ruling prohibits the company from signing exclusive supply agreements with smartphone makers like Apple and requires Qualcomm to submit to court monitoring for the next seven years.
Qualcomm strongly disagrees with the judge's conclusions and immediately seeks a stay on the ruling while pursuing an expedited appeal to the US Court of Appeals for the 9th Circuit. This latest decision adds another layer of complexity to Qualcomm's legal troubles, arriving shortly after the company reaches a separate multi-billion dollar settlement with Apple over similar patent royalty disputes.