After reviewing the draft order from the Japan Fair Trade Commiss...
After reviewing the draft order from the Japan Fair Trade Commission, Qualcomm disputes the notion in the Japanese antitrust regulator’s order that any provisions in its license agreements with its Japanese licensees were forced upon them, the chip maker…
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said. The company said it will file a written response opposing the order within the next two weeks. The JFTC investigative staff will then decide whether to issue a formal order reflecting the terms of the draft order, modify it in some respect, or decline to issue a formal order. If the staff adopts the draft order in whole or in part, Qualcomm will request a full evidentiary hearing and review by the JFTC. Qualcomm will also seek to have any order suspended or stayed during the pendency of the reviews and appeals. Qualcomm’s Japanese licenses were agreed to voluntarily many years ago, after “extensive arms- length negotiations,” the company said. Additionally, these cross-license and non-assert provisions, common elements of many license agreements, provide benefits to Qualcomm customers and licensees, it said. Qualcomm believes requiring revisions of long-standing contracts is neither justified by the facts nor supported by the law. JFTC had asked Qualcomm to change its licensing terms with some of the country’s handset manufacturers (CD July 28 p8).