Despite the cordial working relationship that has existed between QUALCOMM, Inc. (NASDAQ:QCOM) and Samsung, it is not completely agreeable. A report by the South Korea Trade Commission (SKTC) states that Samsung has had to retain its Exynos chipsets on its own devices after being denied the ability to supply them to third parties by Qualcomm.
Samsung has always wanted to trade its Exynos chipsets with manufacturers the likes of Huawei and LG but Qualcomm would not allow. The chipmaker claims that Samsung abused its standard-essential patents. The denial does not only affect the chipsets but it also blocks the sale of Samsung’s modems and other integrated processors.
The Commission reportedly threatened to file suit against Samsung
Word has it that Samsung was in agreement of licensing the patents in the event it began competing against the South Korean electronics maker. However, it seems like Samsung failed to honor its part of the bargain and this has provoked the commission to consider seeking legal redress.
The South Korea Trade Commission’s rules demand fair and non-discriminatory (FRAND) terms during the licensing of standards-essential patents. However, the commissioners allege, “Samsung Electronics has been blocked from selling its modem chips to other Smartphone manufacturers due to a licensing deal it signed with Qualcomm.”
For its substandard practices, Qualcomm may have to meet a legal justification fine amounting to $853 million. Nonetheless, it has vowed to appeal citing a flawed process.
But it is not the first time that Qualcomm is being embroiled in a legal battle
Apparently, Qualcomm is still not off the hook from legal battles given that it is facing issues in several other countries. For example, Apple claims that Qualcomm has been enforcing limiting terms on the use of its patented technology. This has pushed the iPhone maker to file various suits in China, the U.K., and the U.S.
Apple says that it has been pushed to the extreme to seek legal justice following years of disagreement over what constitutes a fair and reasonable royalty with Qualcomm. In the meantime, Qualcomm closed at, 56.92 witnessing an increase of 0.11 or 0.19%.