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Qualcomm settles with Taiwan FTC
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Old 13th August 2018, 06:32   #1
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Default Qualcomm settles with Taiwan FTC

Settles the licensing business practice dispute

Qualcomm has reached a mutual agreement - a settlement with the Taiwan Fair Trade Commission (TFTC) - resolving its investigation of Qualcomm and Qualcomm’s litigation challenging the TFTC’s decision alleging violations of Taiwan’s Fair-Trade Act.

As a result, the whole TFTC decision is replaced by the settlement terms and the decision shall be deemed revoked ab initio (from the beginning) and Qualcomm’s litigation filed in the Taiwan Intellectual Property Court is now closed.

As part of the resolution, Qualcomm has agreed to certain process related commitments offering mutual good faith and fairness in the negotiation of agreements with headset licensees to Qualcomm cellular standard essential patents (SEP).

Qualcomm Technology Licensing (QTL) has been quite transparent about its SEP pricing. The company holds 130,000 patents and wants 3.25 percent for the SEP with the smartphone royalty cap at $400 selling price. For example, a $200 smartphone ends up owing QTL $6.50 per device (3.25 percent x $200) while the most expensive phone, let’s say iPhone or a Snapdragon 845 based Asus Zenfone 5Z that clearly sells for over $400 would end up with (3.25 percent x $400) or $13 US dollars for all standard essential patents for 3G / 4G and even 5G.

As part of the settlement, the parties agreed that the NTD 2.73 billion (approximately $93 million USD) Qualcomm paid towards the monetary fine through the end of July will be retained by the TFTC and no other amounts will be due.

https://fudzilla.com/news/mobile/469...ith-taiwan-ftc
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