The European Commission is to investigate the 3G patent
licensing policies of US-based Qualcomm after six separate
complaints from rivals in the field.
Broadcom, Ericsson, NEC, Nokia, Panasonic and Texas Instruments
have alleged anti-competitive behaviour by Qualcomm in its
licensing of essential 3G handset technology.
Qualcomm developed the CDMA chip technology used in 3G handsets
in the US and owns essential patents in relation to W-CDMA chips
used in handsets in Europe and other regions.
The companies that have complained to the European Commission
allege that Qualcomm is breaking promises it made to international
standards bodies before 3G was commercially rolled out, and that
its licensing policy is not based on reasonable and
non-discriminatory terms.
The complainants say that the price they pay to license W-CDMA
technology is too high, as Qualcomm’s contribution to the
technology is not as great as that for CDMA, which it essentially
owns.
They also allege that some companies that agree to use chips
exclusively from Qualcomm get better technology licensing
deals.
Qualcomm said the allegations are without substance and called
them a negotiating ploy to win better terms under future licensing
agreements.