(Reuters) – Smartphone maker LG Electronics Inc on Tuesday opposed Qualcomm Inc’s efforts to put a sweeping U.S. antitrust decision against the chip supplier on hold as it pursues an appeal.
FILE PHOTO: The logo of Qualcomm is seen during the Mobile World Congress in Barcelona, Spain February 27, 2018. REUTERS/Yves Herman
The Korean company said that it is negotiating chip supply and patent license agreements with Qualcomm and could be forced into signing another unfair deal unless a federal judge’s protections remain in place.
The filing in federal court in San Jose, California, came shortly after the U.S. Federal Trade Commission also opposed Qualcomm’s efforts, saying that it was in the public interest to let the antitrust ruling stand because an appeal could take years.
Both filings stem from a May 21 decision by U.S. District Judge Lucy Koh that would drastically alter the business model of Qualcomm, which supplies modem chips to connect phones to mobile data networks but makes most of its profit through licensing patents.
Among other things, Koh’s decision would require Qualcomm to license its patents to rival chip makers instead of phone makers, which could potentially slice its patent royalties from several dollars per phone to pennies.
Qualcomm on May 28 asked Koh to set aside her decision while it pursues an appeal. The company said that Koh’s decision would entail “radically restructuring its business relationships” in ways that would be impossible to reverse if it wins an appeal.
It also argued that Koh’s ruling raised “serious legal questions” because, among other things, Koh blocked