EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

04.13.17

The World is Burning for Qualcomm, Whose Dependence on Software Patent Bullying is Being Tackled in Several Continents

Posted in Antitrust, Apple, Asia, Microsoft, Patents, RAND, Samsung at 12:49 pm by Dr. Roy Schestowitz

A company stuck in the past with nothing but a pile of patents (like Nokia)

Qualcomm phone

Summary: The days of Qualcomm’s cash cow (a bunch of standard essential patents) may be numbered, as US, EU and Korean authorities belatedly look at the company’s practices and Qualcomm already caves

Qualcomm’s de facto monopoly (in the patents sense), as we’ve covered here before [1, 2], means that people pay Qualcomm a lot of money even when they buy nothing from Qualcomm. In some sense, Qualcomm does in chipsets what Microsoft does in software. It demands ‘protection’ money from just about everyone and it also has patent trolls to help punish for ‘noncompliance’ with unreasonable demands.

Qualcomm Lies

“It demands ‘protection’ money from just about everyone and it also has patent trolls to help punish for ‘noncompliance’ with unreasonable demands.”Not too long ago Qualcomm came under fire from Apple, even though it had abused many other companies. Florian Müller had a peek at the latest documents and found Qualcomm claiming “credit for enabling Pokémon GO,” which is of course nonsense. To quote Müller:

As the number of pages (the original complaint was approx. 100 pages, now the answer and the counterclaims fill 140 pages) shows, this is a huge commercial litigation and threatens to turn into a battle of materiel. Both parties have enlisted multiple major law firms. The first surprise here is that Quinn Emanuel is among the three firms representing Qualcomm, given that Qualcomm’s filing (in paragraph 192 of the counterclaims part) accuses Samsung–another company QE is defending against Apple–of sharing (with Apple) “a common interest in diminishing Qualcomm’s ability to obtain fair value for its innovations” and trying “to avoid paying fair value for Qualcomm’s intellectual property and to impede Qualcomm’s licensing program.” I wonder how Samsung feels about its own lawyers not distancing themselves from such allegations…

Is Qualcomm trying to suck up to the Japanese and Korean regulators with this “Pokémon GO” fairy tale? As one Android-centric site put it, Qualcomm has “Big Trouble in Little Korea” and an Apple-centric site said that “[i]n a 134-page filing with the U.S. District Court for the Southern District of California, Qualcomm provides a point-by-point rundown of Apple’s January lawsuit, denying a total of 389 allegations.”

“Is Qualcomm trying to suck up to the Japanese and Korean regulators with this “Pokémon GO” fairy tale?”What we have here are two patent bullies fighting one another and it’s clear that only law firms are guaranteed to win, as usual (parasites can’t lose).

Qualcomm to Pay BlackBerry

Meanwhile, as emerged in the news last night [1, 2, 3], Qualcomm will need to shell out a lot of money. BlackBerry, which has itself become akin to a patent troll (both directly and indirectly), expects to receive nearly a billion dollars from Qualcomm. BlackBerry awarded $815 million in arbitration case against Qualcomm,” says a headline one reader sent to us about it. Might Qualcomm need to refund even greater amounts of money to other firms?

Qualcomm’s Abuses

Florian Müller published another article earlier today, having watched this case rather closely. “Qualcomm does not want European and Korean antitrust proceedings to impact its FTC litigation,” says the headline. Like Intel and Microsoft, Qualcomm has come under incredible scrutiny in several continents and the effect can be devastating to a company that depends so much on patents rather than actual products. To quote Müller:

Qualcomm, which would have us believe we couldn’t even play Pokémon GO if not for its wireless technologies, is fighting a global, multi-front war against regulators, industry players and consumers (who are piggybacking on the FTC case in Northern California).

On one of those fronts, BlackBerry just won an arbitration award over $815 million. Unfortunately, arbitration is opaque, so the legal basis for this is unclear, other than BlackBerry having claimed to have paid too much in license fees during an unspecified past period. The kind of wrongdoing here is totally unclear, and we also don’t know what an appeals court would have decided. Still, the $815 million award, which is final and binding, has made BlackBerry’s share price soar by 12%. For the Canadian company, it’s a huge amount of money. For Qualcomm, it’s also a very significant amount, but the bigger problem is that every independent finding of Qualcomm having overcharged someone makes it harder for Qualcomm to convince the courts of law and the court of public opinion that it’s just being bullied by the likes of Apple and Samsung and that all those antitrust enforcers have all just been misled by sore losers in the marketplace and by evil companies denying Qualcomm a fair compensation for its innovations.

This concern is real. A joint case management statement filed yesterday by the FTC and Qualcomm–”joint” in terms of being a single document despite virtually zero convergence on substantive questions–in the Northern District of California shows that Qualcomm is indeed concerned about how the various parallel proceedings could influence each other.

The above already mentions the news about BlackBerry, which is important. Is Qualcomm on the run from regulators?

Unfair and Unreasonable

“Apple’s challenge to Qualcomm is already having a positive impact, which is why we said we would support Apple right from the start (in this case alone).”So-called standard essential patents (SEPs) or RAND or FRAND are a subject we’ve covered here many times before. Last night IP Kat said that “It ha[d] been a busy couple of weeks for standard essential patents (SEPs)… and now we have the European Commission’s roadmap on SEPs.”

“FRAND is already in DSM,” Benjamin Henrion explained, “don´t know what is the status of this directive…”

Well, if SEPs like Qualcomm’s lose their legitimacy, the effects would be enormous and also impact software companies. In China, based on what IAM said earlier today, the subject of SEPs and patent trolls that wield them (like Ericsson in Europe) is being brought up and scrutinised. To quote:

We’ve seen a major patent pool introduce a new royalty rate structure aimed at enticing more developing-market implementers to get involved, the first foreign NPE officially enter China through a joint venture agreement, and Apple directly challenging the licensing terms Qualcomm agreed on with Chinese regulators. And, of course, the Beijing IP Court issued the country’s first SEP-based injunction against Sony.

Apple’s challenge to Qualcomm is already having a positive impact, which is why we said we would support Apple right from the start (in this case alone). Companies like Qualcomm offer far too little to society but more importantly, they set a dangerous precedent to be exploited by all sorts of other companies and harm productive companies.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Short: EPO Explains to Examiners Why They Should and Apparently Can Grant Software Patents (in Spite of EPC)

    Whether it calls it "CII" or "ICT" or "Industry 4.0" or "4IR", the EPO's management continues to grant software patents and attempts to justify this to itself (and to staff)



  2. Links 21/4/2018: Linux 4.9.95, FFmpeg 4.0, OpenBSD Foundation 2018 Fundraising Campaign

    Links for the day



  3. As USPTO Director, Andrei Iancu Gives Three Months for Public Comments on 35 U.S.C. § 101 (Software Patenting Impacted)

    Weeks after starting his job as head of the US patent office, to our regret but not to our surprise, Iancu asks whether to limit examiners' ability to reject abstract patent applications citing 35 U.S.C. § 101 (relates to Alice and Mayo)



  4. In Keith Raniere v Microsoft Both Sides Are Evil But for Different Reasons

    Billing for patent lawyers reveals an abusive strategy from Microsoft, which responded to abusive patent litigation (something which Microsoft too has done for well over a decade)



  5. Links 20/4/2018: Atom 1.26, MySQL 8.0

    Links for the day



  6. Links 19/4/2018: Mesa 17.3.9 and 18.0.1, Trisquel 8.0 LTS Flidas, Elections for openSUSE Board

    Links for the day



  7. The Patent Microcosm, Patent Trolls and Their Pressure Groups Incite a USPTO Director Against the Patent Trial and Appeal Board (PTAB) and Section 101/Alice

    As one might expect, the patent extremists continue their witch-hunt and constant manipulation of USPTO officials, whom they hope to compel to become patent extremists themselves (otherwise those officials are defamed, typically until they're fired or decide to resign)



  8. Microsoft's Lobbying for FRAND Pays Off as Microsoft-Connected Patent Troll Conversant (Formerly MOSAID) Goes After Android OEMs in Europe

    The FRAND (or SEP) lobby seems to have caused a lot of monopolistic patent lawsuits; this mostly affects Linux-powered platforms such as Android, Tizen and webOS and there are new legal actions from Microsoft-connected patent trolls



  9. To Understand Why People Say That Lawyers are Liars Look No Further Than Misleading Promotion of Software Patents

    Some of the latest misleading claims from the patent microcosm, which is only interested in lots and lots of patents (its bread and butter is monopolies after all) irrespective of their merit, quality, and desirability



  10. When News About the EPO is Dominated by Sponsored 'Reports' and Press Releases Because Publishers Are Afraid of (or Bribed by) the EPO

    The lack of curiosity and genuine journalism in Europe may mean that serious abuses (if not corruption) will go unreported



  11. The Boards of Appeal at the European Patent Organisation (EPO) Complain That They Are Understaffed, Not Just Lacking the Independence They Depend on

    The Boards of Appeal have released a report and once again they openly complain that they're unable to do their job properly, i.e. patent quality cannot be assured



  12. Links 18/4/2018: New Fedora 27 ISOs, Nextcloud Wins German Government Contract

    Links for the day



  13. Guest Post: Responding to Your Recent Posting “The European Patent Office Will Never Hold Its Destroyers Accountable”

    In France, where Battistelli does not enjoy diplomatic immunity, he can be held accountable like his "padrone" recently was



  14. The EPO in 2018: Partnering With Saudi Arabia and Cambodia (With Zero European Patents)

    The EPO's status in the world has declined to the point where former French colonies and countries with zero European Patents are hailed as "success stories" for Battistelli



  15. For Samsung and Apple the Biggest Threat Has Become Patent Trolls and Aggressors in China and the Eastern District of Texas, Not Each Other

    The latest stories about two of the world's largest phone OEMs, both of which find themselves subjected to a heavy barrage of patent lawsuits and even embargoes; Samsung has meanwhile obtained an antisuit injunction against Huawei



  16. The EPO Continues to Lie About Patent Quality Whilst Openly Promoting Software Patents, Even Outside Europe

    EPO patent quality continues to sink while EPO management lies about it and software patents are openly being promoted/advocatedEPO patent quality continues to sink while EPO management lies about it (the article above is new) and software patents are openly being promoted/advocated



  17. SCOTUS on WesternGeco v Ion Geophysical Almost Done; Will Oil States Decision Affirm the PTAB's Quality Assurance (IPRs) Soon?

    Ahead of WesternGeco and Oil States, following oral proceedings, it's expected that the highest court in the United States will deliver more blows to patent maximalism



  18. Links 17/4/2018: Linux 5.x Plans and Microsoft's 'Embrace'

    Links for the day



  19. The European Patent Office (EPO) Grants Patents in Error, Insiders Are Complaining That It's the Management's Fault

    The EPO has languished to the point where patents are granted in error, examiners aren't happy, and the resultant chaos benefits no-one but lawyers and patent trolls



  20. The European Patent Office Will Never Hold Its Destroyers Accountable

    With only one in seven EPO stakeholders believing that Battistelli's pick (António Campinos) will turn things around for the better, it certainly does not seem like people are happy and there's no real hope that Battistelli will ever be held accountable for his abuses after his immunity expires



  21. With Liars Like These...

    The European Patent Office continues to lie about the Unified Patent Court (UPC) amongst other things, still revealing its reluctance to say anything which is truthful or work to repair the damage caused by Benoît Battistelli



  22. Links 16/4/2018: Linux 4.17 RC 1, Mesa 18.0.1 RC, GNOME 3.28.1

    Links for the day



  23. IAM, Patently-O and Watchtroll (the Patent Trolls' Lobby) Try to Stop Patent Oppositions/Petitions (PTAB)

    In spite of fee hikes, introduced by Iancu's interim predecessor, petitions (IPRs) at the PTAB continue to grow in number and the patent maximalists are losing their minds over it



  24. The Patent Trial and Appeal Board (PTAB) is Ending Software Patents One Patent at a Time

    At an accelerating pace and with growing determination, PTAB (part of AIA) crushes patent trolls and software patents; the statistics and latest stories speak for themselves



  25. Academics and Think Tanks for Patent Maximalism

    Right-wing think tanks and impressionable academics continue to lobby for patent maximalism, rarely revealing the funding sources and motivations; in reality, however, such maximalism mainly helps large (already-wealthy) corporations, monopolists, and law firms



  26. Killing Patent Quality and Encouraging 'Covert' Software Patents Using the Buzzwords Du Jour

    The epidemic of buzzwords and/or hype waves that are being exploited to dodge or bypass patent scope/limitations, as seen in Europe and the US these days



  27. Crisis of Quality at the EPO Extends to Staff (Notably Examiners) and Management as Institutional Integrity is Severely Compromised

    A rather pessimistic but likely realistic outlook for the European Patent Office (EPO), which seems unable to attract the sort of staff it attracted for a number of decades



  28. The 'Blockchaining' of Software Patents (to Dodge the Rules/Guidelines) Now Coming to Europe

    A lot of software patents are being declared invalid (or not granted in the first place); having said that, using all sorts of hype waves (like calling databases “blockchains”) firms and individuals manage to still be granted software patents and sometimes patent trolls hoard these



  29. Links 14/4/2018: Wine 3.6, KDE Elisa 0.1

    Links for the day



  30. East Asia Should Have Adopted the Patent Strategy of South Asia, Notably India

    China seems to be so interested in patent maximalism that it has lost sight of the effect on foreign investment, e.g. US/European/Taiwanese/Japanese/Korean firms operating/manufacturing in mainland China


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts