Qualcomm faces probe in Korea over license related business practices

Qualcomm-Computex
Wireless chip major Qualcomm is facing a probe in Korea over its license related business practices.

Korea is home to smartphone makers LG Electronics, Samsung Electronics and telecom operators SK Telecom, Korea Telecom and LG U+.

Recently, the US-based Qualcomm settled a similar probe in China and settled the case with a $1 billion plus penalty.
Qualcomm today said it has recently received a letter involving the Korea Fair Trade Commission’s staff-generated Case Examiner’s Report (ER) alleging that Qualcomm violates the Korean competition law because the US-based chipset maker does not properly negotiate aspects of licenses.

The letter said Qualcomm, the makers of Snapdragon chipsets, follows practice of licensing its patents at the device level and requiring that its chip customers be licensed to intellectual property. The ER proposes remedies including modifications to certain business practices and monetary penalties. The Qualcomm statement does not talk about the possible penalty and name of the chip customers.

Qualcomm says the allegations and conclusions contained in the ER are not supported by the facts and are a serious misapplication of law.

“Our patent licensing practices, which we and other patent owners have maintained for almost two decades, and which have facilitated the growth of the mobile communications industry in Korea and elsewhere, are lawful and pro-competitive,” said Qualcomm.

“Device level licensing is the worldwide industry norm, and Korean companies have long enjoyed the benefits and protections of access to our patents, which cover essentially the entire device,” said Qualcomm on Wednesday.

Baburajan K
editor@telecomlead.com

Latest

More like this
Related

Qualcomm revenue jumps 19% as shifts focus to AI devices

Qualcomm said its revenue rose 19 percent in fourth-quarter...

MediaTek launches Dimensity 9400, optimized for AI, gaming

MediaTek has introduced its latest chipset, Dimensity 9400, designed...

Qualcomm Networking Pro A7 Elite with Edge AI for Wi-Fi 7 performance

Qualcomm Technologies has announced the launch of the Qualcomm...

Qualcomm intros Snapdragon 7s Gen 3 mobile platform

Qualcomm Technologies has introduced the Snapdragon 7s Gen 3...