Join GamesBeat Summit 2021 this April 28-29. Register for a free or VIP pass today.
(Reuters) — A U.S. appeals court on Tuesday reversed a lower court ruling against chip supplier Qualcomm in an antitrust lawsuit brought by the Federal Trade Commission.
The United States Ninth Circuit Court of Appeals also vacated an injunction that would have required Qualcomm to change its intellectual property licensing practices.
The decision amounted to a near complete victory for the San Diego company, the largest supplier of chips for mobile phones and also a key generator of wireless communications intellectual property and industry standards.
Qualcomm was fighting a May 2019 decision by U.S. District Judge Lucy Koh in San Jose, California. That judge sided with antitrust regulators, writing that Qualcomm’s practice of requiring phone makers to sign a patent license agreement before selling them chips “strangled competition” and harmed consumers.
The case divided antitrust regulators in the U.S. government, with the U.S. Department of Justice intervening to file a brief in support of Qualcomm.
Qualcomm shares, which were already up since March lows as the company continued to show growth despite a sluggish smart phone market, rose about 4% on the news.
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more