Qualcomm may have to change its licensing practices in Korea.Back in December, South Korea’s Fair Trade Commission (KFTC) fined Qualcomm 1.03 trillion won ($912 million) for unlawful licensing deals relating to its modem sales and patents.
Qualcomm said that the KFTC’s claims were “inconsistent with the facts,” and the chip vendor filed two lawsuits with the Seoul High Court, one seeking a reversal of the ruling and the other for a stay on a corrective order that would see the company alter its licensing model in the country.
The court found that the corrective order doesn’t cause “irreparable harm” to Qualcomm, which is why it rejected the company’s motion to suspend the ruling. The order requires Qualcomm to engage in “good-faith negotiations” with chip companies looking to license its patents and “negotiate possible amendments with current licensees upon request.”
Qualcomm said that it will file an “immediate appeal” of the order to the Korean Supreme Court. The corrective order is separate from the $912 million fine the KTFC is seeking, and Qualcomm will be appealing that as well:
The Court’s decision to deny Qualcomm’s stay application does not impact Qualcomm’s appeal of the underlying KFTC decision, which the Seoul High Court will consider later. Qualcomm continues to believe that the KFTC’s decision is not supported by the facts and law, and was the product of a hearing and investigation that denied Qualcomm fundamental due process rights.
Qualcomm also intends to preserve and pursue its arguments that the KFTC’s underlying decision exceeds its authority and principles of international law by inappropriately seeking to regulate intellectual property rights arising under the laws of other nations, including the United States.