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Korean mobile phone makers intend to sue Qualcomm

Seven Korean mid-level cell phone manufacturers, led by Telson Electronics, intend to file a lawsuit against North American Qualcomm, in which they intend to challenge the current system of patent royalties.

The crux of the problem boils down to something like this: Qualcomm currently receives 5.25% of royalties for so-called “Korean-style” phones, that is, intended for the domestic market, and 5.72% for export; payments from CDMA phones of the so-called “Chinese style” are subject to payment of 2.65% for models for the domestic market and 7% for export versions.

Additionally, it became known that the industry leaders – Korean Samsung Electronics and LG Electronics, also do not mind reducing the size of deductions, or rather, “bring them back to normal”, but for this they chose the path of direct, not collective negotiations with Qualcomm.

There is already progress in this case: last week, the Ministry of Information and Communications of South Korea sent a letter to Qualcomm with a formal protest against its policy of patent royalties. At least Korean manufacturers have already secured state support. It is possible that this case will never reach the court.

Source: The Korean Times

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