Qualcomm's Loss In IP Licensing

INTRODUCTION:

Qualcomm faced a setback from the US federal trade commission after it ruled that the latter is making undue advantage of its dominant position in the field of chip manufacturing, an essential part of cell phones. US District Court Judge Lucy Koh said in a long-awaited ruling that the company should must re-negotiate its terms related agreement with cell phone companies regarding supply of chips. It has to change its way of doing business for the purpose of building a sustainable market and to have a free flow of trade and avoiding favoritism to any particular party. The company holds patents right against the majority of chips used by the cell phone companies. This provides the exclusive right to Qualcomm with respect to determining terms of license provided to the cell phone manufacturing companies regarding usage of the chips.