Qualcomm forced to license its patents to other chip makers

07 November 2018
US federal court judge ruled out that the company would have to license its essential patents for making modems.

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  • Anonymous

Anonymous, 13 Nov 2018I do not know about US law but this is robbery to me. Why do the... moreThis was intended to avoid monopoly and for fair competition.

  • Anonymous

I do not know about US law but this is robbery to me. Why do they work? to share their discoveries with others? Do others share anything of equal value?

  • Anonymous

toukale, 07 Nov 2018What are you talking about? No one telling Qualcomm how much to... moreEnlighten me with your knowledge, if Exynos couldn't come to china & US without qualcomm charging them very high, why Exynos chipset can come up in europe and asia. Then what is the patents that qualcomm have? And why the other big companies didn't make a patent/technology that can compete with qualcomm's?

  • Anonymous

People doesn't understand the problem.
The problem isn't technology...
It's licences to use them!

Many are able to make their own modem (Samsung, Huawei, Mediatek, spreadtrum...NVIDIA was, but stopped a long time ago, since Tegra 4i)
The problem is that Qualcomm refuse to sell licences to use them.
Qualcomm directly sell licences to OEM.
No one can buy licences elsewhere. No one can build a phone without these licences...it's not a matter of hardware, it's a matter of having the right to use it

They priced them very high. And negociate to sell both soc and licences...with lower prices on soc

Imagine, you make a soc that cost you 50 dollars (r&d, Arm, GPU, wifi, bluetooth licences, price that TSMC or Samsung ask to process them)
You want to make benefits and try to sell if 70dollars.
This soc is for high-end over 600dollars devices.
Qualcomm ask 30 dollars to OEM for licences
Theses licences cost them 5 dollars in R&D...
They make 25dollars benefits without selling the soc...that's allready more than the competitors.
Plus they reduce price of the soc to 55 dollars...
They sell both the soc and licences to OEM

End of story, competition is dead...
...that's not the end in fact.
By having all the high-end devices, they force the market to use their new technologies, they became a new standard...and they have most licences on it.
With their benefits, they buy others.

That's the case with NFC, they buy NXP Technologies and now they have most NFC licences.
Cheaper alternatives like Hot Knot haven't opportunities to developpe.
Competitors loose money on R&d for technologies that haven't any chances!
After lte/cdma, they can now use NFC to rule the market

  • Anonymous

Anonymous, 08 Nov 2018This is ridiculous... Monopoly is just an excuse used when ... more'Apple and Samsung' can't come up with their own modem technology, because as stated in the article, to make them interop-able with industry standard wireless networks they would have to violate *essential* Qualcomm-patented technology it had incorporated into the standard under false pretenses (that they would license it on in a Fair, Reasonable, And Non-Discriminatory manner).

Well this is like Qualcomm holding all the ropes hopes or strings and thus the tech cant be evolved.
When Motorola released first cellphone back in 1970s era they also could charge other competitors for stealing their patents making a cellphone.

  • nitinsawal

Abhi Dahiya, 07 Nov 2018Pathetic! Qualcomm worked really hard to be at this position and... moreAbsolutely!

  • Anonymous

People doesn't understand the problem.
The problem isn't technology...
It's licences to use them!

Many are able to make their own modem (Samsung, Huawei, Mediatek, spreadtrum...NVIDIA was, but stopped a long time ago, since Tegra 4i)
The problem is that Qualcomm refuse to sell licences to use them.
Qualcomm directly sell licences to OEM.
No one can buy licences elsewhere. No one can build a phone without these licences...it's not a matter of hardware, it's a matter of having the right to use it

They priced them very high. And negociate to sell both soc and licences...with lower prices on soc

Imagine, you make a soc that cost you 50 dollars (r&d, Arm, GPU, wifi, bluetooth licences, price that TSMC or Samsung ask to process them)
You want to make benefits and try to sell if 70dollars.
This soc is for high-end over 600dollars devices.
Qualcomm ask 30 dollars to OEM for licences
Theses licences cost them 5 dollars in R&D...
They make 25dollars benefits without selling the soc...that's allready more than the competitors.
Plus they reduce price of the soc to 55 dollars...
They sell both the soc and licences to OEM

End of story, competition is dead...
...that's not the end in fact.
By having all the high-end devices, they force the market to use their new technologies, they became a new standard...and they have most licences on it.
With their benefits, they buy others.

That's the case with NFC, they buy NXP Technologies and now they have most NFC licences.
Cheaper alternatives like Hot Knot haven't opportunities to developpe.
Competitors loose money on R&d for technologies that haven't any chances!
After lte/cdma, they can now use NFC to rule the market

  • Anonymous

Anonymous, 07 Nov 2018How is this going to benefit Samsung, Apple and Huawei in the sl... moreThis is about modem technology, not Snapdragon.

Modem from Qualcomm is far ahead of Intel's..

  • Anonymous

hitardo, 07 Nov 2018Maybe Exynos starts to become relevant again. Even Surge (SoC by... moreBuddy, prices won't come down.
The companies against Qualcomm want to raise profits, they won't sell their stuff for cheaper price.

Year after year we are paying more and more.

  • Anonymous

Marvin, 07 Nov 2018You are not being forced to share as in free. You are forced to ... moreApple wants to pay how much they want, not how much Qualcomm wants.
That is how it started...

Apple said Qualcomm is overpricing their products.

  • Anonymous

BrendonF, 07 Nov 2018Monopoly is a bad thing for consumers. And qualcomm will still g... moreLess than selling their own products.

  • Anonymous

This is ridiculous...

Monopoly is just an excuse used when there is an interest behind it. There are tons of monopolies out there daily.

How about making Google give access to play store for other OS?
How much % of Americans use Verizon, At&T and T-mobile?

Why don't Samsung and Apple come with own modem tech?

- Hey Qualcomm, I am gonna use your tech and pay how much I want. Not how much you want. So I can boost my profits even further.

  • Anonymous

At least they do it!
That was the reason why I always refused to buy Qualcomm's and supported competitors.
A good step!
Now people had to stop forejudging competitors.

The last Oracle, 07 Nov 2018I hope other American companies including Apple who have been ab... moreWhat the hell does that mean, can't make sense of it. Apple do not have a monopoly, not sure where their monopoly comes from? What market do they have a monopoly in? Smartphone 13-15% share, Macs 8-10%, iPad's about 30-35% etc. I don't see a monopoly anywhere? Mind to fill the rest of us in?

I hope other American companies including Apple who have been abusing monopolies and parents are pulled up. They also need to be fined in the $Billions.

Anonymous, 07 Nov 2018But this is exactly the point, Qualcomm being forced to license ... moreWhat are you talking about? No one telling Qualcomm how much to charge? Qualcomm is not the only ones with those essential patents either, there are others like Nokia etc... Qualcomm's issue with the FTC is they are jacking the prices of their licensing fee if you don't buy their snapdragon chips. It's the reason why Samsung still put snapdragon chips inside their phones in the US and China. It''s cheaper to do so than to use their own chips (Exynos) because Qualcomm will kill them on the licensing fees.

Apple for its parts have been willing to pay those fees because they want to use their own A series chips until last year, they said enough. Its the reason they are currently in a court battle with Qualcomm now.

  • Anonymous

JOHN, 07 Nov 2018i hope this happens so that other chip makers can expand as well:)Who? Crapple? F them i'm out of the smartphone usage then.

  • lyndino

hitardo, 07 Nov 2018Maybe Exynos starts to become relevant again. Even Surge (SoC by... moreI disagree with you, Huawei's phones are no cheaper with the inferior kirin chips.
The end user will NEVER see anything change for them, flagships will stay around $800 - $1200 never to be lower. That's the price for premium. Only the more money for the big tech giants.

Anonymous, 07 Nov 2018How is this going to benefit Samsung, Apple and Huawei in the sl... moreThis is really about modem license than anything else. Right now Intel is having to work around those patents with the modems they provide to Apple. It's also the reason why Qualcomm's modems works better overall. This will open the market and provide a lot more competition. This is not about the ARM's chips from those vendors.