BRUNSWICK GROUP PLC ANNOUNCES LEADING MOBILE WIRELESS TECHNOLOGY COMPANIES CALL ON EUROPEAN COMMISSION TO INVESTIGATE QUALCOMMS ANTI-COMPETITIVE CONDUCT
Friday October 28, 6:34 am ET
London--(MARKET WIRE)--Oct 28, 2005 --
UNDER EMBARGO UNTIL 11.30AM BST
28 October 2005
Leading mobile wireless technology companies call on European Commission
to investigate Qualcomm's anti-competitive conduct
biz.yahoo.com
Broadcom, Ericsson, NEC, Nokia, Panasonic Mobile Communications and Texas
Instruments have each filed Complaints to the European Commission
requesting that it investigate and stop Qualcomm's anti-competitive
conduct in the licensing of essential patents for 3G mobile technology.
The companies state that Qualcomm is violating EU competition law and
failing to meet the commitments Qualcomm made to international standard
bodies around the world that it would license its technology on fair,
reasonable and non-discriminatory terms. Absent these commitments, the
WCDMA 3G standard would not have been adopted. Qualcomm is infringing
these rules by:
- trying to exclude competing manufacturers of chipsets for mobile
phones from the market and preventing others from entering. To this
end, Qualcomm has committed a number of abuses, ranging from the
refusal to licence essential patents to potential chipset competitors
on fair, reasonable and non-discriminatory terms to offering lower
royalty rates to handset customers who buy chipsets exclusively from
Qualcomm.
- charging royalties for its WCDMA essential patents that are excessive
and disproportionate; in particular by imposing the same royalty rate
on WCDMA 3G handsets as it does for CDMA2000 3G handsets despite the
fact that Qualcomm has contributed far less technology to the WCDMA 3G
standard than it has to the CDMA2000 standard.
The companies believe that Qualcomm's anti-competitive behaviour has
harmful effects for the mobile telecommunications sector in Europe, as
well as elsewhere, because carriers and consumers are facing higher
prices and fewer choices.
-Ends-
Enquiries
Brunswick
Joanna McDwyer +44 20 7404 5959
Richard Jacques +32 2 235 6511
Broadcom +1 949 926 5555
Bill Blanning
Ericsson +46 8719 1880
Peter Olofsson
NEC +44 20 8752 2794
Chris Shimizu
Nokia Europe +358 7180 34900
Nokia Americas +1 202 887 0570
Panasonic +44 20 8899 2217
Brendon Gore
Texas Instruments +1 214 480 6808
Gail Chandler
Company Statements
"Major telecommunications equipment companies on three continents are
standing up and saying that Qualcomm's business practices are unfair,
anticompetitive and ultimately illegal. Qualcomm's illegal practices
stifle competition and ultimately hurt the consumer." David A. Dull,
Senior Vice President, Business Affairs; General Counsel; and Secretary,
Broadcom Corporation
"Qualcomm committed to standard setting organisations that it would
license its technology on fair, reasonable and non-discriminatory terms.
In spite of this and in breach of competition law, Qualcomm is charging
excessive and disproportionate royalties. This means ultimately that
consumers may have to pay more than they should for their mobile
handsets."
Kasim Alfalahi, Vice President IPR Licensing and Patents, Ericsson
"Qualcomm's anti-competitive licensing practices and excessive royalties
are restricting innovation and the development of 3G mobile telephony to
the detriment of consumer choice."
Botaro Hirosaki, Senior Vice President, NEC Corporation
"Intellectual property rights have an increasing role in business. There
are rules of law that apply to the licensing business, and patentees and
other intellectual property rights owners cannot ignore them."
Ilkka Rahnasto, Vice President, Intellectual Property Rights, Nokia
Corporation
"Panasonic Mobile Communications believes that Qualcomm is charging
excessive and disproportional royalty rates in breach of EU competition
law and industry requirements to offer licenses for essential patents on
fair, reasonable and non-discriminatory terms."
Haruo Suzuki, Director,Member of the Board, Panasonic Mobile
Communications Co. Ltd.
"Standards are established to guide the industry's technology development
and provide a healthy environment for innovation and competition. We
believe Qualcomm has abused its licensing position in certain standards
and has inhibited legitimate competition. If this conduct goes
unchecked, the risk is that consumers in Europe and around the world will
pay higher prices for mobile phones and services and have less access to
innovative products."
Joe Hubach, General Counsel, Texas Instruments Incorporated
Contact:
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Source: Brunswick Group LLP |
