This is the second major lawsuit filed against Qualcomm this week, with the US Federal Trading Commission announcing on Tuesday that it is taking the chip maker to court for « monopolizing key semiconductor device used in cell phones. » The two lawsuits are related.
The FTC claims that « Qualcomm has used its dominant position as a supplier of certain baseband processors to impose onerous and anticompetitive supply and licensing terms on cell phone manufacturers and to weaken competitors. » According to the agency, it managed to receive higher royalties and better terms for standard-essential patents, which normally fall under FRAND (fair, reasonable, and non-discriminatory terms), as a result of its practices.