Qualcomm, Taiwan Attain Settlement in Patent-Licensing Dispute

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QCOM -Zero.40%

notched a victory in its effort to protect its patent-licensing enterprise, because it reached a settlement with the Taiwanese authorities that revokes a earlier discovering towards the chip maker and saves the corporate almost $700 million in fines.

The settlement comes as world’s dominant provider of chips for smartphones seeks to chart a brand new path following a tumultuous yr that concerned warding off a takeover effort by rival


and abandoning its takeover of

NXP Semiconductors

NV amid commerce tensions between the U.S. and China. Chief Govt

Steve Mollenkopf

is pursuing an bold plan to carry earnings and scale back the corporate’s dependence on smartphone-related chip gross sales, all whereas battling authorized challenges to its licensing enterprise from


Qualcomm’s points in Taiwan spiked in October when Taiwan’s Truthful Commerce Fee fined the corporate $773 million and dominated Qualcomm violated the nation’s legal guidelines by unfairly licensing its patents, a call that might have upended Qualcomm’s enterprise by forcing it to license its mental property to different chip makers.

The settlement revokes Taiwan’s ruling, Qualcomm stated. As a replacement, Qualcomm stated it has pledged to barter in good religion with Taiwanese handset makers together with HTC and agreed to let Taiwanese authorities intervene to resolve any negotiation-related disputes.

Qualcomm additionally stated it dedicated to take a position an undisclosed sum of money over the following 5 years in Taiwan by collaborating on 5G expertise with chip makers and others, funding research-and-development tasks with universities and growing a Taiwanese middle for operations and manufacturing engineering.

Below the settlement, Taiwan will maintain $93 million in funds from Qualcomm towards the fantastic assessed final yr, however the remaining quantity was waived, in accordance with the chip maker.

Qualcomm continues to face regulatory challenges within the U.S., the place the Federal Commerce Fee sued it in early 2017, alleging the corporate engaged in illegal techniques to keep up a monopoly on cellular-communications chips. It is also interesting an $853 million fantastic by South Korea’s Truthful Commerce Fee over alleged antitrust violations.

Within the U.S., the corporate stays mired in a authorized battle with Apple and several other Taiwanese producers, which have sought to finish the chip maker’s observe of accumulating royalties on your entire gross sales worth of a handset as much as $400.

Write to Tripp Mickle at Tripp.Mickle@wsj.com

Supply hyperlink – https://www.wsj.com/articles/qualcomm-taiwan-reach-settlement-in-patent-licensing-dispute-1533872303?mod=pls_whats_news_us_business_f

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