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Cooperating With Competitors In The Wake Of Qualcomm

Law360 (June 3, 2019, 3:03 PM EDT) -- On May 21, 2019, the U.S. District Court for the Northern District of California delivered a lengthy rebuke to Qualcomm Inc. for its licensing practices.

While Qualcomm is known as a leading supplier of cellular modem chips, the majority of its revenue comes not from the sales of the chips themselves, but from the patent royalty fees Qualcomm charges purchasers. To maximize royalty fees, Qualcomm employs an unconventional “no license, no chips” business model that conditions sales on entering into licensing agreements with Qualcomm.[1] In a 233-page opinion, U.S. District Judge Lucy H. Koh found that this practice violated Sections 1...

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