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Qualcomm Reaches 93 Billion Settlement in iPhone Antitrust Case with Taiwan Regulator

Mobile chipmaker Qualcomm will resolve an anti-trust case with Taiwanese regulators for approximately $ 93 million (about SEK 641 million) and has also promised to invest $ 700 million in Taiwan in the next five years. 19659002] The settlement replaces a fine of approximately $ 778 million (approximately 5 550 crores) imposed by Taiwan's Fair Trade Commission in 2017 when it accused the US company of refusing to sell chips to mobile handset manufacturers who would not approve their patent licensing terms.

It was also accused of cutting the iPhone manufacturer Apple a royalty free rebate in exchange for the exclusive use of Qualcomm's modem chips earlier.

During the termination, Qualcomm will report every sixth month to Taiwanese officials for five years to demonstrate that it has been negotiated in good faith with handset manufacturers in patent licensing agreements.

In addition, Qualcomm will need to offer patent licenses to rival chipmakers such as Intel Corp and Med iaTek on fair terms before attempting to complete their patent rights to the court.

Qualcomm is also in the midst of appealing $ 927 million (approximately $ 6,400 crores) fine from the Korea Fair Trade Commission and a fine of $ 1

.2 billion (approximately 8,300 crores) from the European Commission. It is also facing a trial from the US Federal Trade Commission and has a major legal dispute with Apple.

As part of the Taiwanese deal Qualcomm will continue to pay a royalty based on the handset price price – An important part of its licensing model that Apple and others have objected to.

As the settlement replaces the original decision and fines, other antitrust regulators and legal enemies will now be less likely to be able to use the Commission's results as a basis for their own legal action.

As part of the agreement, Qualcomm agreed to build new manufacturing and operating facilities in Taiwan and work with Taiwan University and new technology initiatives for the so-called 5G technology, the next generation of wireless networks, said the company.

Taiwan's Fair Trade Commission said it amounted to an investment of $ 700 million over five years.

"With the uncertainty, we can now expand our relationships that support Taiwan's wireless industry and rapid adoption of 5G technology," said Alex Rogers, Qualcomm's patent licensee.

© Thomson Reuters 2018

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