Qualcomm asks court for a stay pending appeal in antitrust case
Telecoms equipment company Qualcomm has asked a district court to stay a decision that Qualcomm’s patent licencing practices were illegal and “strangled competition”, as it plans to file an appeal.
Qualcomm filed the motion on May 28 at the US District Court for the Northern District of California, San Jose Division, after the court sided with the US Federal Trade Commission (FTC) and said Qualcomm must renegotiate licencing agreements with its customers.
One week before, the court had found that Qualcomm’s “no licence, no chips” business practice violated antitrust laws and gave the mobile chip maker an unlawfully dominant position in the market, as reported by WIPR.
In its latest filing, Qualcomm said the injunction imposed by the court will require it to renegotiate many existing licences and offer “exhaustive licences” for its standard-essential patents (SEPs) which cover the manufacture of modem chips.
Qualcomm said this was something that neither it nor any other major SEP owner undertakes outside of the “narrow context of cross-licensing arrangements”.
The chip maker said it “strongly disagrees” with the order because any new agreements that it enters into while the appeal is pending will remain effective, even if Qualcomm ultimately prevails upon appeal.
The filing added that this would not only irreparably harm Qualcomm, but would also deny the company its right to effective appellate review.
“After radically restructuring its business relationships, Qualcomm will not be able to return to its pre-injunction business in an orderly fashion. Nor will it be able to unwind licensing agreements it has renegotiated in the shadow of an order that is later overturned,” said Qualcomm.
According to the telecoms equipment company, the court’s order threatens to damage the wireless communications industry and Qualcomm believes it has a “fair prospect of success” in overturning the order on appeal.
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Today's top stories:
‘Elder Scrolls’ owner settles TM dispute with sci-fi author
