Qualcomm wins a crucial battle

In the business model of Qualcomm, its revenue mainly comes from two parts. The first part is to provide mobile phone manufacturers with processors and cellular baseband chips; the second part is from patent and licensing fees. If other companies use the relevant patents of Qualcomm, they should pay according to a certain proportion of the ex factory price of mobile phones. < / P > < p > in 2017, the Federal Trade Commission, a sub department of the US government, was established The global communications giant was sued for alleged monopoly, believing that it abused the dominant position of Qualcomm in the chip market, forcing mobile phone manufacturers to enter into a patent licensing agreement with them. If the mobile phone manufacturers use the Qualcomm baseband, they need to pay higher patent fees to Qualcomm if they use other baseband chips. < / P > < p > in 2019, a federal judge ruled that Qualcomm abused its monopoly in the field of wireless chips and charged excessive patent fees to mobile phone manufacturers. < / P > < p > and the reason why this lawsuit is crucial to Qualcomm is that FTC’s accusation against Qualcomm is actually a total denial of the business model of the communications giant. This means that mobile phone customers may overturn previous agreements, and that Qualcomm will need to work out a new royalty model with them, and that it will not stop supplying chips. < p > < p > for this, Qualcomm will lose huge profits. According to the 2018 financial report of Qualcomm, although the revenue of its chip solutions business exceeds 70% of the total revenue, nearly 50% of the company’s profits are provided by the patent licensing business. < / P > < p > in the same month, Qualcomm immediately appealed, claiming that it did not prevent mobile phone manufacturers from using other companies’ technologies, and that the patent licensing model was a charging model that has been used since the era of analog communication. < / P > < p > in an interview with the media, senior vice president of Qualcomm Snyder also said that what Qualcomm wanted to express was that there was no evidence that Qualcomm hindered the competition in the mobile phone market and chip market, and that there was no violation by Qualcomm. < / P > < p > on August 12, 2020, the U.S. Court announced that it formally overturned the previous ruling of its lower court on the Federal Trade Commission’s lawsuit against the monopoly of Qualcomm. The court held that the company did not impose an anti competitive surcharge on the sale of modem chips from other companies, and FTC could not prove that the communication company, which dominates the chip market, was engaged in monopoly Activities. < p > < p > Snyder also pointed out that the larger background of FTC’s lawsuit against Qualcomm is that apple is actually represented behind FTC, “they have common interests”. Snyder said that “common interest” refers to that apple and FTC have signed a “common interest agreement” privately to communicate how to crack down on Qualcomm, and thus achieve the goal of attacking the Android mobile phone camp served by Qualcomm. “Apple claims that this is a conflict between the entire industry and Qualcomm. In fact, Apple’s real motivation is to crack down on its Android competitors.” < / P > < p > looking back from the results now, it seems that everything is already over. After apple and Qualcomm reached a settlement in April last year, the two sides directly ended dozens of century lawsuits around the world, and Apple also paid $4.7 billion in arrears for this. < p > < p > Apple’s overall shift to high pass in 5g baseband chips also led to Intel’s abandonment of previous research on 5g related technologies. < p > < p > in addition to apple, last month, Qualcomm and Huawei reached a series of cooperation. Huawei will pay $1.8 billion in settlement payment and sign a longer-term global patent license agreement with Huawei. < / P > < p > in the global market, Qualcomm has signed a series of patent licensing agreements with almost all mobile phone manufacturers. The settlement with Huawei and Apple may mean that the toughest moment for Qualcomm is over. Fifth personality will be updated, please remember your game account, otherwise you may not be able to play normally