Qualcomm has patent disputes masterplan

NEW QUALCOMM CEO, Paul Jacobs, has hinted that he might have discovered a loophole in the constant saga over IPR battles over US patents. Split the company in two.

Qualcomm has fired yet another shot over Nokia's bows in the shape of a complaint to the United States International Trade Commission (ITC) over alleged infringements of six Qualcomm patents. However, in an interview given to the FT, he expressed his willingness to break the company up. One company would handle the licensing of Qualcomm's IPR while the other half would design and sell the chips.

The cunning plan would then force Nokia to sue the IPR company while the chip company could go about its business unhindered. At a minimum such a ploy would keep the lawyers busy seeking to work out who exactly could sue who.

At the centre of this dispute is the fact that Qualcomm's IPR made its way into an international cellular standard - namely, W-CDMA. Others who added their own IPR into that standard - including Nokia - argue that Qualcomm is charging too high a price for its licensing fees.

Particularly since handset vendors who use Qualcomm's chips are charged less.

It's an interesting gamble because Qualcomm could lose out when it comes to 4G. Having just bought Flarion which has 4G technology in the shape of OFDM, Qualcomm could find its attempts to set an 'international' standard based on its IPR are blocked. µ

See Also:
Qualcomm sues Nokia - again
Qualcomm blames misinformation for IPR squabbles