Intel released an amicus in support of a US District Court’s decision that Qualcomm’s licensing practices strangled competition in the smartphone modem market for years.
The court found that these practices hurt competitors, smartphone manufacturers, and, by extension, consumers. Intel believes its attempts to enter the smartphone chip business were thwarted by these anticompetitive practices, despite Intel investing billions of research dollars to develop a comparable product.
In particular, Intel believes Qualcomm was able to offer below-cost pricing on modems because it charged buyers for the modems and intellectual property licenses separately. In the amicus, Intel accuses Qualcomm of refusing to sell modem chips to smartphone manufacturers unless they signed an agreement to give Qualcomm royalties for smartphone sales, even if that smartphone does not use a Qualcomm chip.
Qualcomm typically charged a licensing fee of approximately 5% of the total value of a smartphone, up to $20, according to Wired. Intel alluded to the fact that Qualcomm used this strategy in securing a contract with Apple, which had previously been under contract with Intel. The loss of this contract contributed to Intel eventually selling …read more
Source:: Businessinsider – Tech