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Qualcomm must license modem tech to rivals like Intel, court rules

Denying a motion to delay court proceedings while settlement talks are ongoing, U.S. District Judge Lucy Koh on Tuesday issued a preliminary ruling against Qualcomm in the Federal Trade Commission's antitrust lawsuit.

Qualcomm must license some of the patents it holds for smartphone modems to firms like Intel, Koh ruled according to Reuters. The company is accused of forcing companies like Apple to buy its wireless chips in exchange for better patent royalty rates.

In fact Apple was in an exclusive modem supply arrangement with Qualcomm for several years, but started mixing in Intel chips with 2016's iPhone 7, and is now Intel-only with the iPhone XS and XR.

The FTC case is related to an Apple action dating back to January 2017. Apple filed a $1 billion lawsuit shortly thereafter, marking the beginning of a global legal war, compounded by actions from various government bodies and Qualcomm accusations that Apple handed trade secrets to Intel to improve chip performance.

In August, Qualcomm reached a settlement with Taiwanese antitrust regulators, avoiding a $773 million fine in exchange for paying $93 million and investing $700 million in the country over the course of five years. It has also made deals with parties like Samsung, which like Apple is a major phone customer.



39 Comments

tht 23 Years · 5658 comments

Qualcomm reached a settlement with Taiwanese antitrust regulators, avoiding a $773 million fine in exchange for paying $93 million and investing $700 million in the country over the course of five years.
Ugh, this is so short sighted. Nation states should force QCOM to license their SEP at FRAND rates based on the cost of the modem. Make it as cheap as possible. This makes the most economic sense for a place like Taiwan as everyone and their couch surfing amateur OEM will be able to put LTE modems into their devices. This means more business for TSMC, more business for OEMs, more business for carriers, so on and so forth. Commoditizing modems enables more. Instead, they go for a pittance and let QCOM use their SEP rate practices go on.

Dollars to donuts, Apple will have their own Apple design cellular modem hardware, on a separate chip or right into the SoC die. Driving licensing rates for SEP to costs of the components is a big deal for them.

bluefire1 10 Years · 1311 comments

I really hope they resolve this quickly, because based on my owning every model of iPhone from 2007 to the Max, there’s no question that the QUALCOMM modem is far superior to the Intel version. I  was so fortunate to have QUALCOMM modems in my iPhones right up through iPhone X.  As much as I love my Max,  I’m very disappointed with the quality of the Intel modem. Apple, are you listening? 

mark fearing 16 Years · 441 comments

Qualcomm is one of my least favorite tech companies. They really seem one step above a patent troll. For those who are all screaming about Qualcomm making better modems, hate to tell you it's one element in a complicated system. Not that big ideal. But them using this to force purchases of their other devices ETC is the problem. They really should do something else worthwhile. 

chasm 10 Years · 3629 comments

bluefire1 said:
there’s no question that the QUALCOMM modem is far superior to the Intel version. I was so fortunate to have QUALCOMM modems in my iPhones right up through iPhone X.

I’m calling BS on this. “Far” superior? Show me some independent testing that confirms this. Also, Qualcomm isn’t an acronym. Finally, you’ve owned every single model of iPhone from the original to the Max? Yeah, you’re either a QCOM employee or just trolling.

sflocal 16 Years · 6139 comments

bluefire1 said:
I really hope they resolve this quickly, because based on my owning every model of iPhone from 2007 to the Max, there’s no question that the QUALCOMM modem is far superior to the Intel version. I  was so fortunate to have QUALCOMM modems in my iPhones right up through iPhone X.  As much as I love my Max,  I’m very disappointed with the quality of the Intel modem. Apple, are you listening? 

Nonsense.  While from a pure technical standpoint, one could make the argument that Qualcomm is ahead of the game, but from the end-user's perception... there is little to ZERO difference in real-world performance.  This has already be discussed.


I don't care how "fast" QC's modems are since the infrastructure is not there and won't be for at least a couple more years.  Quite making stuff up.