Qualcomm could be fined $900 million by South Korea over patent abuse
Qualcomm may face a $900 million fine if the Fair Trade Commission (FTC) of South Korea finds the company guilty of abusing its patents. According to allegations, Qualcomm has charged Korean manufacturers unreasonably steep fees for licensing its products, thus violating the principle of fair market competition. The first verdict of the FTC will be revealed on July 20, and should Qualcomm be found guilty of preliminary allegations, the company may face the largest fine ever issued by the FTC of South Korea.
An FTC official, speaking to The Korea Times, had this to say on the matter:
Qualcomm has been collecting royalties from manufacturers on a per-product basis, calculating the fees based on the value of the whole product, rather than only on the used Qualcomm-patented parts. The company has been collecting some $1.27 million annually from manufacturers such as LG and Samsung. Last year, Qualcomm faced a similar $1 billion fine after an anti-trust dispute in China.
source: The Korea Times via Android Authority
Qualcomm has been collecting royalty fees from mobile phone manufacturers based on certain fixed rates from the suggested price of a mobile device. Qualcomm should have sought royalty fees based on each chipset.
Qualcomm has been collecting royalties from manufacturers on a per-product basis, calculating the fees based on the value of the whole product, rather than only on the used Qualcomm-patented parts. The company has been collecting some $1.27 million annually from manufacturers such as LG and Samsung. Last year, Qualcomm faced a similar $1 billion fine after an anti-trust dispute in China.
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