The Japanese antitrust regulator Japan Fair Trade Commission orde...
The Japanese antitrust regulator Japan Fair Trade Commission ordered Qualcomm to eliminate some provisions from its patent licensing agreements with its Japanese licensees, Qualcomm said. JFTC alleged that the chip manufacturer forced Japanese licensees to accept cross-license provisions without…
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compensation, and to accept a provision under which the Japanese licensees agreed not to assert their essential patents against other licensees that had agreed to a similar provision. Qualcomm claimed none of its Japanese licensees were forced to enter into licensing agreements, and it will pursue an appeal before the Japanese courts if JFTC affirms the order. The provisions were the subject of “extensive arms-length negotiations with sophisticated parties,” are common in technology licensing agreements, and generate “enormous benefits for the wireless industry and consumers,” Qualcomm claimed. The provisions promote “patent peace,” and reduce transaction costs and licensing fees, it said. Many handset and infrastructure manufacturers as well as wireless operators have relied on these provisions in business planning, said Donald Rosenberg, executive vice president and general counsel of Qualcomm. “If Qualcomm were to eliminate these provisions, there is a risk that some Japanese licensees may attempt to assert their previously licensed patents against Qualcomm, its customers and its licensees,” he said.