Technology: Qualcomm can keep current business practices for now, appeals court says - PressFrom - US
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TechnologyQualcomm can keep current business practices for now, appeals court says

03:40  24 august  2019
03:40  24 august  2019 Source:   cnet.com

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A federal appeals court halted for now a ruling that found Qualcomm committed an array of antitrust violations, a boost for the chip maker that allows it to maintain its business practices for the near future. Court allows chip maker to continue current business practices for now , a setback for FTC.

If the appeals court ultimately finds in Qualcomm 's favor, the chip giant said , the company won't be able to undo the changes it's made. "This court has repeatedly found that a stay is warranted when -- as here -- an injunction imposes changes on a party's business practices and commercial

A US appeals court on Friday froze an antitrust ruling against Qualcomm , allowing the chipmaker to maintain its current business practices for now. Qualcomm has been embroiled in a lawsuit with the US Federal Trade Commission, which two years ago accused the chipmaker of operating a monopoly and forcing Apple and other customers to work with it exclusively.

Qualcomm can keep current business practices for now, appeals court says© Provided by CBS Interactive Inc. The appeals process could take a while. Getty Images Qualcomm can keep current business practices for now, appeals court says© CNET

The Ninth US Circuit Court of Appeals in San Francisco granted Qualcomm's request to stay an order that it change how it licenses its technology. In May, US District Court Judge Lucy Koh ruled that Qualcomm used its dominance to force unnecessary licensing fees on phone makers and illegally hurt competitors in the wireless-chip market.

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Qualcomm Inc., smarting from a major legal setback that could unravel its business model, will now look to Koh endorsed almost all of the FTC’s accusations against Qualcomm and said the company will need 30. The Trump administration is likely to support Qualcomm through its appeals process

It’s hard to say what U.S. District Court Judge Lucy Koh was thinking when she ruled in favor of the Federal Trade Commission and against Qualcomm late Tuesday, citing the need to end the company’s alleged “monopolistic” and “unfair” SEP (Standard Essential Patents) licensing practices .

Qualcomm said its practices were lawful and justified and that Koh's ruling would hurt the company as it appealed the case, according to a report by The Wall Street Journal.

The appeals court's decision means Qualcomm doesn't have to change its business practices during the course of the litigation, which may last another year. The appeals court will hear oral arguments in January, it said.

"We are pleased that the Ninth Circuit granted our request and believe the district court decision will be overturned once the merits of our appeal have been considered," Don Rosenberg, executive vice president and general counsel for Qualcomm, said in a statement.

The FTC didn't immediately respond to a request for comment.

Qualcomm to expand 5G chips into mid-priced phones next year.
US-QUALCOMM-5G:Qualcomm to expand 5G chips into mid-priced phones next year

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