Qualcomm CEO defends chip-licensing business in FTC trial

FAQs

1. What is Qualcomm’s “no license, no chips” policy?

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   • Qualcomm requires companies to obtain a license for its patents before they can purchase its chips.

2. Why does Apple oppose Qualcomm’s policy?

   You are watching: Qualcomm CEO defends chip-licensing business in FTC trial

   • Apple prefers to have multiple suppliers for its components, and Qualcomm’s policy limits competition.

3. What has the FTC alleged in its lawsuit against Qualcomm?

   • The FTC claims Qualcomm has a monopoly on modem chips and has harmed competition.

4. What is Qualcomm’s defense against the FTC’s allegations?

   • Qualcomm argues its policy is necessary to ensure that phone makers have access to the latest technology.

5. What is the significance of Qualcomm’s 2011 agreement with Apple?

   • The agreement gave Apple exclusive access to Qualcomm’s modem chips in exchange for a payment, which has not been disclosed.

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   What is the estimated amount of Qualcomm’s incentive payment to Apple?

   • The amount has not been publicly disclosed.

7. What is the role of Intel in the FTC’s case against Qualcomm?

   • Intel is a rival modem chip maker that has assisted the FTC in its investigation.

8. What is the potential outcome of the FTC’s lawsuit against Qualcomm?

   • If Qualcomm loses, it could result in reduced competition and higher prices for consumers.

9. What is Qualcomm’s reasoning for not splitting its technology licensing and chip sales businesses?

   • Qualcomm believes the licensing revenue enables it to invest in research and development.

10. What is the current status of the FTC’s lawsuit against Qualcomm?

    • The trial is ongoing in US District Court in San Jose.

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    What will happen if Qualcomm loses the lawsuit?

    • It could face penalties, such as fines or forced changes to its business practices.

12. How can consumers stay informed about the outcome of the FTC’s lawsuit against Qualcomm?

    • By following news updates and reading reputable sources of information.

Summary

The battle between the Federal Trade Commission (FTC) and Qualcomm centers around Qualcomm’s “no license, no chips” policy, which requires companies to license Qualcomm’s patents before purchasing chips from them. The FTC alleges that this policy harms competition and allows Qualcomm to maintain a monopoly on modem chips.

Qualcomm defends its policy, arguing that it ensures phone manufacturers have access to the latest technology and allows Qualcomm to invest in research and development. However, Apple, Intel, and other companies have criticized the policy, claiming it stifles competition and raises prices for consumers.

The trial is ongoing, and the outcome could have significant implications for the smartphone industry. If Qualcomm loses, it could face penalties and forced changes to its business practices. The verdict will also impact other companies in the tech sector that have similar licensing agreements.

Consumers and industry stakeholders should stay informed about the outcome of this case, as it could affect the prices and availability of smartphones in the future.

Source: https://anytimesoftcare.com
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