Qualcomm bites back against allegations
Six companies accuse telecommunications company of unfair licensing
Related to this topic
News Story by Dan Nystedt
OCTOBER 31, 2005 (IDG NEWS SERVICE) - Qualcomm Inc., the mobile telecommunications chip and software developer, cried foul over allegations of unfair licensing practices and countered that the companies involved in a complaint to the European Commission may be trying to renegotiate their licensing fees.
Last week, six leading mobile telecommunications companies said they had filed complaints to the commission charging Qualcomm with anticompetitive behavior.
Qualcomm called the allegations "factually inaccurate and legally meritless" and vowed to vigorously defend itself, in a statement late Friday.
The company also said the action by the group of companies, which includes Nokia Corp. and LM Ericsson Telephone Co., "appears to be nothing more than an attempt by these licensees to renegotiate their license agreements by seeking governmental intervention." The company added, "We welcome the opportunity to demonstrate these facts in an open and public process."
Nokia officials didn't immediately return requests for comment, and an Ericsson representative in Asia declined comment.
The complaint to the commission alleges that Qualcomm failed to adhere to agreements it made when it contributed its patents to the Wideband Code Division Multiple Access (WCDMA) standard. WCDMA is the industry standard most European regulators have adopted for 3G (third-generation) mobile networks.
It also accuses Qualcomm of using its patents for an unfair advantage in the market, forcing third-party chip suppliers to charge a higher price than Qualcomm because the San Diego-based company essentially discounts the price of its patents when it sells its own chip sets.
Qualcomm said the fact that there are more than 130 licensees of its essential patents, including five of the six companies that filed the commission complaint, shows it licenses its technology on fair and reasonable terms.
"The widespread market acceptance of Qualcomm's licensing program conclusively demonstrates that Qualcomm's licensing practices are fair, reasonable and procompetitive," the company said.
computerworld.com |
