Qualcomm has received and reviewed a full translation of the draft order from the Japan Fair Trade Commission (JFTC), which asserts that Qualcomm’s Japanese licensees were forced to cross license patents to Qualcomm on a royalty-free basis and were forced to accept a provision under which licensees agreed not to assert their essential patents against each other. The draft order seeks to require Qualcomm to modify existing licenses with Japanese companies to eliminate these provisions while preserving the license of Qualcomm’s patents to the Japanese companies. If Qualcomm were to eliminate these provisions as contemplated by the draft order, there is a risk that some Japanese licensees may attempt to assert their previously licensed patents against Qualcomm, its customers and its licensees.
Qualcomm said it disputes the notion that any provisions in its license agreements with Japanese companies were forced upon them. The company will submit a written response opposing the draft order within the next two weeks.
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