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Korean Court Rejects Qualcomm's Request to Suspend an Order demanding it Negotiate in Good Faith with Apple & others

1AF X99 S. Korea FTC

 

As 2016 was coming to a close Patently Apple posted a report titled "Korea's Antitrust Agency Hits Qualcomm with Record $865 Million Fine for Excessive Licensing Fees to Phone Makers." Our report noted that the agency accused Qualcomm of coercing mobile phone makers, including South Korea's Samsung Electronics and LG Electronics as well as Apple of U.S., to pay excessive licensing fees under unfair conditions set by the company.

 

Qualcomm had subsequently filed two lawsuits with the Seoul High Court, one calling for the nullification of the regulator's decision and another seeking the suspension of the corrective order until a ruling on the first is made.

 

Today we're learning from Reuters that a South Korean court rejected Qualcomm's request to suspend an order by the country's antitrust agency to take corrective action on the way it licenses patents.

 

The court turned down the suspension request because it did not believe the regulator's order would pose a risk of "irreparable damage" to Qualcomm, a spokeswoman told Reuters.

 

The regulator also ordered Qualcomm to negotiate in good faith with rival chipmakers on patent licensing, and renegotiate chip supply agreements with mobile phone makers if requested.

 

If the order is upheld, such measures would affect Qualcomm's dealings with major tech firms including Apple, Intel, Samsung Electronics and Huawei Technologies.

 

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