FTC, Qualcomm dig in for high-stakes antitrust trial
MLex Market Insight
MLex Market Insight
4.9 • 9 Ratings
🗓️ 11 January 2019
⏱️ 12 minutes
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| 0:00.0 | Hello and welcome to another MLEX podcast. I'm Amy Miller, Mlex's senior privacy and data security reporter in San Francisco, California. |
| 0:19.2 | The high-stakes antitrust trial pitting the U.S. Federal Trade Commission against |
| 0:23.4 | cellular chipmaker Qualcomm is underway in a federal courtroom in Silicon Valley. |
| 0:28.2 | For three days, the two sides of dug-in, presenting diametrically opposed viewpoints on Qualcomm's |
| 0:33.3 | dominance in the market for modem chips for high-end wireless devices. |
| 0:37.9 | The trial is less than halfway complete and Qualcomm has yet to offer its own evidence, |
| 0:42.6 | but there's still plenty to break down. |
| 0:45.2 | Here today to bring us up to speed on what's happening is M-Lex senior correspondent Josh |
| 0:49.2 | Cisco, who's been at the trial every day, and Mike Swift, chief global digital risk correspondent who's |
| 0:54.8 | been helping out. Hi Josh and Mike. Hi Amy. Hey Amy. So Josh, first off, remind us what |
| 1:01.0 | this legal fight is all about. So the Federal Trade Commission is challenging how Qualcomm is licensing |
| 1:07.2 | certain patents that are for cellular communications. |
| 1:11.6 | Qualcomm's, a lot of Qualcomm's technology are used in standards, |
| 1:15.6 | which confer on it an obligation to license differently than other patents, |
| 1:21.6 | and the Federal Trade Commission is saying that they have not lived up to that obligation. |
| 1:25.6 | Chief among the allegations are this policy that Qualcomm has where they won't sell |
| 1:32.1 | customers' chips unless the customers also take a license, and the FTC says that Qualcomm uses |
| 1:39.0 | threats of cutting off chip supply until they get the licensing terms that they want. |
| 1:44.8 | And Qualcomm counters that they have never cut off chip supply, that the two units are separate, |
| 1:51.9 | that the licensing arm of the company doesn't have the power to cut off chip supply, |
| 1:57.5 | and that that would impact relationships with their customers, some of the largest mobile |
| 2:02.5 | device makers in the world, like Apple, Samsung, Wallway, and Huawei. |
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