Another Shoe Drops In The Qualcomm Patent Licensing Saga

Just when observers thought Qualcomm could celebrate its successful litigation with Apple another decision has come down which could have major implications for Qualcomm's business going forward.

In a much-anticipated 233-page opinion, Judge Lucy Koh of the Northern District of California found that Qualcomm's licensing practices for patents used in the cellular industry violated federal antitrust laws. Federal Trade Commission v. Qualcomm, Incorporated, Case No. 17-CV-00200-LHK (May 21, 2019). The crux of the case centered on the fact that Qualcomm's patent portfolio contained several standards-essential patents ("SEPs"), which Qualcomm had made commitments to standard setting organizations (SSOs) to license on fair, reasonable, and nondiscriminatory ("FRAND") terms. However, the effect of Qualcomm's patent licensing practices, coupled with its sales practices regarding its own chips, had been to "create insurmountable barriers for rivals" (Op. at 193). Judge