High crime and punishment: expired patent fees-Qualcomm, Qualcomm was sent-IT news High crime and punishment: the expired patent fees

According to the national development and Reform Commission website to disclose information, Qualcomm CEO Derek Aberle have recently on antitrust issues, led a delegation to the national development and Reform Commission for the third time to exchange views and accept the inquiry. This investigation started in late November last year, have so far been 8 months, recent market Qualcomm will be convicted, and could face maximum penalty since 2009.

The beginning of 2013, several panels manufacturers such as Samsung, LG, because price-fixing, is punishable by a fine of 350 million yuan in China for the first time. As the leading mobile phone chips Qualcomm can avoid catastrophe?

Telekinesis "dialogue"

Qualcomm is the world's largest cell phone chip business, but due to business-side b (business), so in the mobile consumer-side did not attract much attention, but the antitrust case starting at the end of last year, while Qualcomm has pushed to the front desk.

On February 19, the NDRC officials confirmed for the first time is in the antitrust investigation of Qualcomm, said the investigation began in November last year, due to development and Reform Commission, received a "report to the relevant enterprises, associations".

According to the national development and Reform Commission newly disclosed information, on July 11, Qualcomm President leads delegation to the national development and Reform Commission for the third time, exchange views on antitrust-related issues and accept the inquiry. Ever since the investigation started last year, Derek Aberle had on April 3, May 8, twice visiting the national development and Reform Commission.

The last two surveys, the NDRC has been coy, did not disclose further details, just simply say that antitrust issues related to both sides "exchanged views" in a survey on May 8, "explains Qualcomm, saying cooperating with the investigations and seek ways to solve the problem. ”

And NDRC latest of bulletin is first detailed disclosure has Qualcomm suspected violation anti-monopoly method of some problem, which including to machine as calculation license fee of based, and will standard necessary patent and non-standard necessary patent bundled license, and requirements was license people for free anti-license, and on expired patent continues to charges, and will patent license and sales chip for bundled, and refused to on chip production enterprise for patent license, and in patent license and chip sales in the additional not reasonable trading conditions, suspected illegal of behavior.

Announcement also indicates, national development and Reform Commission conducted on-site investigations related to Qualcomm's authorized personnel, and making the enquiry.

However, the rumour about "confirm monopoly" problem, development and Reform Commission, at present there is no relevant disclosures. Meanwhile, Qualcomm China, people involved in the interview also said antitrust information needs through the United States, there is at present no official response.

The coincidence is, Qualcomm CEO molunkefu recent visit to China, which is since its March to his new post, his third visit to China. Molunkefu does not respond to the antitrust issue, but announced that it would start up to $ 150 million financing in support of China venture capital company, he also said, "the Chinese Government is actively promoting the local semiconductor industry, Qualcomm is ready to support the Chinese Government in a move. ”

But in the latest quarter press release, general principles had freed another high signals.

The company claims that charges a licensing fee in China have encountered obstacles, affect its third-quarter results in the next few quarters may also be affected. Qualcomm also specifically mentioned, a number of Chinese manufacturers fail to mobile phone sales, and some manufacturers failed to reached a licensing agreement with Qualcomm.

Derek Aberle said that Qualcomm's fiscal third-quarter revenue of $ 6.81 billion, up 9% $ 6.24 billion in the same period a year net profit to 2.24 billion dollars, than 42% $ 1.58 billion in the same period last year. Despite the season's performance exceeded Wall Street expectations, but in anticipation of bearish, close July 24, Qualcomm shares were down 5%.

Prior to that, Qualcomm executives have repeatedly said that with the arrival of the 4G, chip and a licensing business, China will be faced with a new round of growth opportunities. But as the antitrust case into clearer, Qualcomm this desire or be delayed.

Patent fees to the war

"For domestic companies, can't say that discrimination, but there is a difference. "ISuppli China Research Director Mr Wang told reporters that compared to companies such as Nokia and Apple, Chinese business to Qualcomm's patent costs are slightly higher.

Kevin Wang introduced, Qualcomm commercial mode main based on three a part: first is Licence license fee, similar Yu joined costs, manufacturers in Qualcomm platform development phone, Qualcomm provides corresponding of software development platform and technology service support, one-time charged costs, cost hundreds of thousands of dollars to Shang million dollars ranging; then is Qualcomm of chip costs, used Qualcomm chip, price 10 dollars-20 dollars ranging; last is is manufacturers in made phone for market sales zhihou, needs to Qualcomm paid patent costs, " This proportion is generally 5%. ”

Worth noting is that since Qualcomm has a lot of core patents, many manufacturers are hard to bypass. Even without using the Qualcomm platform phones such as Broadcom, Marvell, mediatek chip manufacturers, such as programmes, and also to pay patent fees, even if the third-party chip distributors and Qualcomm licensing agreement.

But Mr Wang stressed that manufacturers will eventually need to pay royalties, is dependent on the core areas of patent right of discourse. "With Nokia as an example due to acquire key patents and its payments to Qualcomm's patent costs about 3% per cent, domestic enterprises like Huawei and other core patent, patent costs are relatively low, but like the OPPO, Vivo and other brands are not the core patents to deliver Qualcomm's royalty rate for 5%. ”

"This 5%, akin to cell phone manufacturers factory price, that is, before entering a retail price. "Mr Wang said that in addition to patents, a charging base, domestic manufacturers also has disadvantages, whether it's Huawei or other mobile phone makers, base is based on the total ex-factory price. In contrast, some big-name companies, such as Apple, is relatively reasonable, charging base for cost price.

Kevin Wang, for example, iPhone , for example, if cost was the $ 300 at Foxconn, Apple sells for $ 600, patent fee is US $ 300 for the base. "This a lot lower than the domestic. ”

In response to the antitrust, Wang Yang think still needs to be defined in law. For high-throughput, however may be faced with two options, one is in the proportion of patent licensing and make some adjustments on the base, or accept a certain amount of fines. "The ultimate market, Qualcomm and still need to be negotiated. ”

But there is concern about the anti-monopoly is not optimistic.

Market research company Deputy General Manager Qi Sun Sai Noi believes that the so-called antitrust investigation, "does not have any special results. "Qualcomm owns a large number of essential patents, executed in China and movement without opening the Chinese market," can do have mobile phones in the country only a few domestic mobile phone manufacturers. "On the contrary, the investigation, accentuating the importance of intellectual property.

He also said, as chip-related business only part of the mobile phone is very small, "expected regardless of the outcome of this survey, consumers would have little effect. ”