Chipmaker Qualcomm really does not agree with too many phone manufacturers. After all, as detailed in the FTC v. Qualcomm that was decided against the company, Qualcomm has a number of sales practices considered anti-competitive. These include its policy "No license, no chip", royalties calculated using the selling price of a phone and its refusal to grant essential licenses to competitors at a fair, reasonable and reasonable price. non-discriminatory (FRAND). These are patents that manufacturers must obtain under license in order for their products to meet certain technical standards.
In December, Samsung dropped the Korean justice lawsuit against Qualcomm and was replaced by LG. In 2016, Qualcomm was fined $ 915 million by the Korean Fair Trade Commission for Patent Abuse. Qualcomm did not accept the fine and a lawsuit ensued. Among the complainants were companies with which you are familiar, including Apple, Samsung, Intel, MediaTek and Huawei. But Qualcomm and Samsung have agreed to a cross license agreement. Sammy was abandoned and LG entered. And last June, LG's license agreement with Qualcomm expired.
LG held 2.4% of the global smartphone market in the first half
Well, if you're a worried LG fan that the company is getting a new deal with the chip maker, do not be scared. Qualcomm announced Tuesday that it has signed a new worldwide patent licensing agreement with the manufacturer, which will allow LG to use Snapdragon SoCs, modem chips and other components on full-featured singlemode and multimode 3G devices. , 4G and 5G. The contract lasts five years and Qualcomm will receive royalties from LG. Qualcomm did not reveal the dollar terms of the agreement, but stated that "the agreement is in accordance with Qualcomm's general conditions of license".
LG will now be equipped with Qualcomm's Snapdragon 5G modem chips for the next five years
As we have already discussed, the FTC case c. Qualcomm has resulted in Judge Lucy Koh's ruling against Qualcomm, which should force the company to change the way it sells chips. However, the chip maker has requested the stay of the decision until the appeal process is over, which seems fair. Qualcomm does not want to be in a position where it renegotiates all its contracts and then wins the call, forcing it to return to the previous terms of the covenants. But Judge Koh rejected the suspension application and it is now in the hands of the Ninth Circuit US Court of Appeals.
"Qualcomm is pleased to sign a new global patent licensing agreement with LGE, which builds on our long-standing technology relationship and reaffirms the value of its world-class patent portfolio." Qualcomm is the developer and facilitator of core technologies. We are proud to put our advanced technologies at the disposal of major OEMs such as LGE and to help them deliver compelling products around the world. "- John Han, Executive Vice President and General Manager, License of Qualcomm technology
According to IDC, LG is the world's ninth-largest smartphone maker with a global market share of 2.4% in the first half. IDC analyst Ryan Reith believes that signing LG on the dotted line is a big win for Qualcomm. Reith said the deal was "a win for Qualcomm because it locks one of the top 10 handset manufacturers in a heavier market, with fewer and fewer brands on the market."
For LG, like Apple before it, signing a license agreement with Qualcomm provides it with a stock of 5G modem chips. In the middle of next year, the United States should have at least one national 5G wireless network operational. You may remember that Apple was feeling desperate earlier this year after Qualcomm decided not to sell the 5G company's modem chips after the two companies filed numerous lawsuits. Apple urged Intel to develop its 5G modem chip in time for use in iPhones 2020. But in April, Apple and Qualcomm surprised everyone by entering into an agreement. All lawsuits were dropped and Apple paid Qualcomm an amount of $ 4.5 billion in exchange for a six-year license agreement (with a two-year option) and a multi-year chip supply contract. Apple subsequently bought Intel's modems for smartphones for an estimated $ 1 billion.
