An American judge has determined that Qualcomm may continue with its practices where it bundles licenses for patents with the sale of modem chips. This practice was banned in May, but as long as the appeal is allowed, Qualcomm may continue.
The Court of Appeal, which is based in San Francisco, has ruled that Qualcomm does not have to comply with an earlier ruling in which a prohibition was pronounced on linking patent licenses to modem ship sales. Although the ban is not on the table, Qualcomm does not have to respond to it as long as there is an appeal.
In May , an American court ruled against tying, and said that Qualcomm is abusing its power and asking for unreasonably high royalties for the use of its patents. The case was brought by the American watchdog FTC. Qualcomm then indicated in a response that it strongly disagreed with the verdict and announced that it would appeal.
In a response, the chip manufacturer announced that it was happy with the Court of Appeal’s ruling. According to Qualcomm, the ruling ensures that it can continue to invest in 5g technology. If the appeal is lost, Qualcomm will still have to renegotiate its patent deals with its customers. The case will be continued in January next year.