The signed deal means that LG Phones will work with Snapdragon Chips for another five years. Qualcomm Chipmaker does not really agree with many phone manufacturers. After all, as detailed in the FTC v. Qualcomm that is against the company. Qualcomm has a series of sales practices that are quite anti-competitive. These including “No license, no chips” policy, royalties calculated using the retail price of a telephone. And its refusal to grant standard-essential patent licenses to competitors at a fair, reasonable and non-discriminatory price (FRAND). These are patents that manufacturers must license in order for their products to meet certain technical standards.
In December, Samsung abandoned a Korean antitrust suit against Qualcomm and was replaced by LG. In 2016, Qualcomm was fined $ 915 million by the Korea Fair Trade Commission for patent abuse. Qualcomm did not accept the fine and a trial occurred. The applicants included companies he was familiar with, such as Apple, Samsung, Intel, MediaTek, and Huawei. But Qualcomm and Samsung agreed on a cross-license agreement and it was then that Sammy retired and LG did. And last June, the LG license agreement with Qualcomm has expired.
LG Had 2.4% Of The Global Smartphone Market In The First Half Of The Year
Well, if you’re a fan of LG and you’re in the confusion that the company will reach a new deal. Along with the chipmaker, don’t be afraid. On Tuesday, Qualcomm announced that it has reached a new global patent licensing agreement with the manufacturer. It will allow LG to use SoC Snapdragon, modem chips and other components in complete single-mode, multimodal 3G, 4G, and 5G devices. The contract has a duration of five years and Qualcomm will receive royalties from LG. Although the terms of the dollar deal are not going to disclose.
Qualcomm states “The agreement is consistent with Qualcomm’s established global licensing terms.”
As mentioned above, FTC v. Qualcomm led Judge Lucy Koh to decide against Qualcomm. It should force the company to change the way it sells chips. As per the request by chipmaker that the ruling is facing suspension until the completion of the appeal process and this seems right. Qualcomm does not want to be in a position where it renegotiates all its contracts. And therefore, wins the appeal that forces it to return to the previous terms of the alliances. But Judge Koh denied the request for suspension. And is now in the hands of the US Court of Appeals for the Ninth Circuit.
“Qualcomm is pleased to enter into a new global patent license agreement with LGE. This agreement builds on our long-standing technology relationship and reaffirms the value of Qualcomm’s world-class patent portfolio. Qualcomm is the developer and enabler of foundational technologies for the wireless industry and is the leader in the transition to 5G. We are proud to make our breakthrough technologies available to leading OEMs like LGE and to support them in delivering compelling products around the world.”-John Han, senior vice president, and general manager, Qualcomm Technology Licensing
5G Modem Chips By Qualcomm
According to IDC, LG is the ninth smartphone manufacturer in the world. With a global market share of 2.4% in the first half of the year. IDC analyst Ryan Reith believes that making LG sign on the dotted line is a big win for Qualcomm. Reith said the deal is “a win for Qualcomm because it locks up one of the top 10 handset manufacturers in a top-heavier market. There are fewer and fewer brands out there.”
For LG, like Apple before, the signing of a license agreement with Qualcomm provides a supply of 5G modem chips. In the middle of next year, in the US should have at least one 5G wireless network in operation. You might remember, Apple felt desperate earlier this year after Qualcomm decided not to sell the company’s 5G modem chips. After the two companies filed several lawsuits between them. Apple was pushing Intel to develop its 5G modem chip in time for use with iPhone 2020s. But in April, Apple and Qualcomm surprised everyone by reaching an agreement. Apple paid Qualcomm approximately $4.5 billion in exchange for a six-year license agreement (with a two-year option) and a multi-year chip supply agreement. Later, Apple bought the Intel smartphone modem business for an estimated $1 billion.