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ARTICLE · 31 AUGUST 2020

Our Analysis Of The Ninth Circuit Panel Decision Reversing FTC v. Qualcomm

Cleary Gottlieb Steen & Hamilton LLP
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The recent Ninth Circuit panel decision reversing the district court's judgment in FTC v. Qualcomm, Inc., has important implications for the role of antitrust in standard essential patent (SEP)

United StatesAntitrust/Competition Law

On August 11, 2020, a Ninth Circuit panel reversed the District Court for the Northern District of California's judgment in FTC v. Qualcomm, Inc. The panel held that Qualcomm's conduct—(a) refusing to license its standards essential patents (SEPs) to rival chipset manufacturers; (b) refusing to supply chipsets to OEMs unless they first executed a license to its SEPs ("no license, no chips"); and (c) making exclusivity payments to Apple—was not anticompetitive. The panel did not disturb the District Court's conclusions that Qualcomm had monopoly power in the markets for code division multiple access (CDMA) and premium long-term evolution (LTE) cellular modern chipsets.

The panel's opinion had several key holdings:

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