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Qualcomm could be fined $900 million by South Korea over patent abuse

Posted: , by Milen Y.

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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 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.

source: The Korea Times via Android Authority

11 Comments
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posted on 18 Jul 2016, 08:57

1. Barney_stinson (banned) (Posts: 672; Member since: 30 May 2016)


Weird s**t;!!!

posted on 18 Jul 2016, 09:51 2

2. TechieXP1969 (Posts: 14134; Member since: 25 Sep 2013)


Make the liars pay!

If an OEM is already paying for the chipset, why do they have to pay a royalty fee on top of it? Isn't that double dipping?

Make them refund every OEM and fined them on top of it. And break them out of business and let them die..

Greedy lying dogs!

posted on 18 Jul 2016, 10:32

3. ebilcake (Posts: 952; Member since: 16 Jul 2016)


Oh dear, hopefully nothing will come of this.

posted on 18 Jul 2016, 11:14

4. marorun (Posts: 5029; Member since: 30 Mar 2015)


Lol wana bet Samsung and LG started this? Cant beat them or make better stuff so you have to sue. Basically acting like apple on this one.

posted on 18 Jul 2016, 12:38 1

5. ebilcake (Posts: 952; Member since: 16 Jul 2016)


But they are making better stuff, last time I checked Exynos 8890 provided better overall performance well being more efficient, as did Exynos 7420 in last gen devices.

This is just business, if it's true Qualcomm have been "double dipping" then it's going to cost them.

posted on 18 Jul 2016, 12:53 2

6. tedkord (Posts: 13872; Member since: 17 Jun 2009)


What didn't they make better? The Exynos the past two years not only obliterated the Snapdragon line in benchmarks, but also in thermal performance and battery life. QC was bringing up the rear the whole time.

posted on 18 Jul 2016, 19:57 2

8. tedkord (Posts: 13872; Member since: 17 Jun 2009)


"Cant beat them or make better stuff so you have to sue."

That does describe a certain corporation, but it's not either of the two you listed.

posted on 18 Jul 2016, 21:53

10. yoghibawono (Posts: 234; Member since: 04 May 2016)


funny PA didnt mention that the Fair Trade Commission (FTC) of South Korea is investigating this for 17 months

posted on 18 Jul 2016, 13:42 1

7. btbotimtim (Posts: 255; Member since: 08 Dec 2010)


samsung and lg should have used sd820 on low end models so that they dont pay more.

posted on 18 Jul 2016, 21:55

11. yoghibawono (Posts: 234; Member since: 04 May 2016)


no! ruin the competitiveness! if only Qcom holds the seat of flagships of SoC, prices will always be steep. Since it's Qcom (flagships) way or MTK way (cheap midranger).

posted on 18 Jul 2016, 21:02

9. cheetah2k (Posts: 1739; Member since: 16 Jan 2011)


Good to see LG might get some $$ back for the overheating 810 failure that cost them millions in revenue having to drop to the 808 chipset and release a midrange G4 instead of a flagship performance leading G4..

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