License Qualcomm, Huawei, FRAND, 5G, licensing agreement, mobile telephony, SEP, Sep, SEP, SEPS, Antitrust, FRAND-Bedingungen, Lizenzen, Smartphone-Hersteller, Chiphersteller, Huawei and Qualcomm, FTC The European Court of Justice and the Federal Court of Justice have already ruled on the FRAND rules: the European Court of Justice (ECJ) raised the issue with the Case of Huawei vs. ZTE in 2015 , the Federal Court of Justice (BGH) only in May 2020 in Sisvel v Haier. Both courts set criteria for the availability of licensees. At the end of the year, the US authorities also issued a statement of principle in which they strengthened the right of patent holders and licensees to appeal for MS violations under the frand obligation. In the press release, Qualcomm mentions a six-year global patent license with Apple and a multi-year chipset supply contract with Apple. Earnings are expected through «Apple`s payment and the release of our payment or refund obligations from Apple and the contract manufacturers,» according to Qualcomm. The 5-year contract includes 3G, 4G and 5G and multi-mode devices for Qualcomm, licensing is an important part of qualcomm`s business practice. As a result, its licensing agreements are monitored. As essential patents (MS) that are typical of the mobile telephony sector, licensees can expect fair FRAND licensing conditions. The U.S. Federal Trade Commission (FTC) is reviewing qualcomm and its licensing agreements in a cartel and abuse of dominance proceedings and the matter is currently being appealed. The outcome can be eagerly awaited, as the FTC`s lawsuit against Qualcomm is the first major FRAND breach of cartels and abuse of dominance that tests its relevance to cartels and abuse of dominance. The new 5G standard for mobile telephony is also part of the licensing agreements before the corresponding frequencies are awarded in Germany at the auction.
The Frankfurter Allgemeine Zeitung reported that Apple knew there would be no 5G chip from chipmaker Intel and needed cooperation with Qualcomm. And in August 2018, Nokia announced plans to royalty around the 5G standard – one of three major technology companies holding a significant share of standard patents, called Standard Essential Patents (SEP). This is the right time for Qualcomm to get a licensing agreement with Huawei. According to Qualcomm, the agreement includes a cross-license that restores rights to certain Huawei patents and covers sales from January 1, 2020. The agreement between the two U.S. companies came at an opportune time, with the start of a patent procedure in California, which was important for both parties. Apple has accused Qualcomm of overprocessing its patents and thereby obstructing competition. Qualcomm has criticized Apple`s devices for using Qualcomm`s technology without a patent license. These issues have been the subject of various international proceedings between Apple and Qualcomm, which have led one of the parties to win and the other to win. «We made profits above the high end of our range, continued our product and licensing business and entered into a new long-term patent licensing agreement with Huawei, all of which position us well for the 2020 balance and beyond,» Mollenkopf said.
The patent dispute between Huawei and Qualcomm has been resolved. Huawei will pay Qualcomm an additional $1.8 billion. In return, both parties signed a comprehensive long-term patent licensing agreement.