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Qualcomm business practices up before a judge

The judge is Lucy Koh who has shown a very independent streak in judgments affecting big companies who have used bully-boy tactics.

The case is the US Federal Trade Commission  v Qualcomm.

The disputed business case is Qualcomm’s practice of charging chip customers a percentage of the value of the end product.

Supporting the FTC are Apple, Samsung and Intel.

The case opens on Friday Jan 4th in San Jose and is expected to last for ten days.

If Qualcomm loses its income will be severely reduced. If Qualcomm wins, it will be able to recover the $7 billion which, it claims, Apple owns it in unpaid licence fees.

The crux of the matter is that Qualcomm technology was adopted as an industry standard in return for a Qualcomm promise that it would license essential patents on fair reasonable and non-discriminatory terms.

Instead Qualcomm has charged on the value of the end product, rather than the value of the chip, which is an unusual industry practice, and has also  refused licences to some companies.