ARTICLE
2 February 2017

Korean Ruling Places Qualcomm's Business Model At Risk

M
Mintz

Contributor

Mintz is a litigation powerhouse and business accelerator serving leaders in life sciences, private equity, sustainable energy, and technology. The world’s most innovative companies trust Mintz to provide expert advice, protect and monetize their IP, negotiate deals, source financing, and solve complex legal challenges. The firm has over 600 attorneys across offices in Boston, Los Angeles, Miami, New York, Washington, DC, San Francisco, San Diego, and Toronto.
On December 28, 2016, the Korean Fair Trade Commission issued a steep fine against Qualcomm for antitrust violations in patent licensing and modem chip sales – a record penalty that the U.S. company will challenge in court.
South Korea Intellectual Property

On December 28, 2016, the Korean Fair Trade Commission (KFTC) issued a steep fine ("KFTC Ruling") against Qualcomm for antitrust violations in patent licensing and modem chip sales – a record penalty that the U.S. company will challenge in court. Finding that Qualcomm leverages its standard-essential patent (SEP) portfolio to further its chipset business in contravention of Qualcomm's fair, reasonable and nondiscriminatory (FRAND) obligations and Korean antitrust law, the agency levied a penalty of over US$850 million and directed Qualcomm to alter its business model.

The KFTC Ruling is just one of the latest challenges to Qualcomm's licensing strategy and also sets forth Korea's understanding of what FRAND obligations entail. Mintz Levin attorneys provide detail and insight in " Korea, In Sanctioning Qualcomm, Articulates A New Meaning For 'FRAND'", as published on IP Law 360.

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