Qualcomm CEO defends chip-licensing enterprise in FTC trial – CNET

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Qualcomm CEO defends chip-licensing enterprise in FTC trial – CNET

Qualcomm CEO Defends Chip-licensing Enterprise In FTC Trial - CNET

Qualcomm and the FTC are going through off within the US District Court docket in San Jose, California.


Stephen Shankland/CNET

The Federal Commerce Fee thinks your telephone is being held again by Qualcomm’s enterprise practices. However Qualcomm Chief Govt Steve Mollenkopf says the best way his firm sells chips to smartphone makers is finest for everyone concerned.

Qualcomm’s “no license, no chips” coverage is on the coronary heart of the FTC’s case against Qualcomm, which legal professionals are arguing earlier than Decide Lucy Koh in US District Court docket in San Jose this month. Mollenkopf was among the many witnesses who testified on Friday.

Beneath the coverage, firms should license Qualcomm’s patents earlier than it’s going to promote them chips. Qualcomm clients, comparable to Apple, don’t love that one bit. 

Mollenkopf says the apply is solely one of the best ways to get issues performed for the entire trade, not only for his firm. That is as a result of Qualcomm’s patent licenses cowl heaps extra expertise a telephone may use than merely what’s in his firm’s modem chips, which let telephones speak to cellular networks.

“We solely promote to firms with a license as a result of not all of the IP [intellectual property] is roofed within the chip. What we wish to do is ensure that the [phone makers] are coated,” Mollenkopf stated. He pointed to the safety framework used when telephones connect with a community for instance. “It isn’t embodied within the chip, it is not within the telephones, but it surely’s in all this stuff,” Mollenkopf stated. “There is a super quantity of iP we generate that makes the system work.”

The FTC, aided by modem chip rival Intel and iPhone maker Apple, filed a go well with two years in the past arguing that Qualcomm has a monopoly on modem chips and harmed competition by making an attempt to keep up its energy. The trial has revealed the internal workings of tech’s most necessary enterprise, smartphones, displaying how suppliers wrestle for dominance and revenue.

Apple’s 2011 and 2013 agreements to buy Qualcomm’s modem chips are key examples. Earlier than the 2011 settlement, for instance, Apple approached Qualcomm in regards to the prospect of solely supplying Qualcomm’s modem chips within the iPhone in alternate for a $1 billion incentive cost, Mollenkopf testified. An incentive cost was made, though the quantity hasn’t been disclosed.

Tony Blevins, Apple’s vp of procurement, provided a really different view of the Apple-Qualcomm partnership in earlier testimony on Friday.

“As we supply parts, we sometimes try to get at the least two sources and possibly no more than six,” he stated. “We expect competitors and market forces are essential to us to realize the most effective leverage. With exclusivity, there could be no competitors.”

Blevins stated Qualcomm is all however distinctive in requiring a buyer to license its patents earlier than shopping for its merchandise. One other chipmaker tried to take action as soon as however one name from Blevins to its CEO modified that method, Blevins stated.

Nonetheless, Mollenkopf defended his firm’s apply. Qualcomm even thought of splitting its expertise licensing enterprise off from its chip gross sales enterprise in 2015, an concept that Mollenkop, who was lately appointed CEO, argued towards.

“The licensing permits us to put money into expertise early. It generates plenty of IP,” Mollenkopf stated. The corporate makes use of the proceeds for analysis and improvement into new applied sciences, he added. 

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Qualcomm CEO Defends Chip-licensing Enterprise In FTC Trial - CNET
Qualcomm CEO Defends Chip-licensing Enterprise In FTC Trial - CNET
Qualcomm CEO Defends Chip-licensing Enterprise In FTC Trial - CNET
Qualcomm CEO Defends Chip-licensing Enterprise In FTC Trial - CNET
Qualcomm CEO Defends Chip-licensing Enterprise In FTC Trial - CNET

Qualcomm CEO Defends Chip-licensing Enterprise In FTC Trial - CNET

Qualcomm CEO Defends Chip-licensing Enterprise In FTC Trial - CNET

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