InterDigital Inc (IDCC)

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Antitrust investigation into Qualcomm deepwater or "let go."
2014-07-25 11:45:31 | Source: fiscal Network | I want to share

Yesterday, media reports said, the NDRC has identified Qualcomm monopoly fact, is to Chinese companies investigating Qualcomm sales data. Close to the Development and Reform Commission today on the "First Financial Daily" said the NDRC is promoting the progress of investigation of the case, questioned the NDRC Qualcomm is recognized for the high pass regulations related investigations is likely to be adjusted in the future. (More Exclusive News, please add the Micro Signal cbn-yicai)

"NDRC aspects of the current attitude is also very tough, is expected to be the result of several months in the future." The proximity Development and Reform Commission, told reporters that the current Qualcomm aspect is also seeking official help to reduce the company's losses. Yesterday, Qualcomm Global CEO Steve Moran Cove appeared in Beijing, in Beijing held a media conference that he will invest $ 150 million to support Chinese start-up companies, but said nothing about the antitrust investigation.

Qualcomm in the previous third quarter conference call, said the company's China Development and Reform Commission's investigation has led some Chinese companies get delayed Qualcomm patent licensing process. In addition, some have achieved Qualcomm authorized company (licensees) reported less related income, which will affect the future results of Qualcomm.

Affected by the news, Qualcomm 24 daily close $ 76.17, the stock fell 6.65%, the market value evaporate over 9.1 billion U.S. dollars.

July 11, the National Development and Reform Commission website information display, Qualcomm's president Derek (Derek Aberle) recently third rate team to the National Development and Reform Commission, the anti-monopoly investigation of issues related to the exchange of views and accept the survey asked. NDRC price supervision and inspection and anti-monopoly Bureau of the responsible person and Derek president of Qualcomm case on alleged breaches of China's "anti-monopoly law," the path to solve the problem and exchanged views.

Meanwhile, the vice president of Qualcomm authorized Fabian (Fabian Gonell), who received the survey asked the case investigators. Investigators focus on to the machine as the basis for calculating the license fee, and non-standard standard essential patents essential patents bundled licenses require the licensee to carry out free anti-license fee to continue expired patent, patent licensing and sales of chips will be bundled, Chip manufacturers refused to patent licensing and additional unreasonable trading conditions in patent licensing and chip sales alleged violations, conducted a field survey and produced the record of inquiry.

This is the start of the high-pass and Reform Commission antitrust investigation since last year, Qualcomm executives polled third time to the NDRC asked. NDRC launched last November from Qualcomm antitrust investigation, the NDRC had raided Qualcomm Beijing and Shanghai to conduct surveys handset manufacturers, chip manufacturers and other related businesses. February 19, 2014, the National Development and Reform Commission confirm that the monopoly market in China, over to collect royalties and tying behavior Qualcomm antitrust investigation.

NDRC survey, with "the whole basis for calculating the license fee" means a Qualcomm licensing fee is not calculated according to the cost of the chip, but according to the machine to calculate the price of 5% (based on shipments Different slight adjustments). China Mobile Wang Yanhui League Secretary General told reporters that Qualcomm's patents have an absolute majority in the EVDO communication protocol that is used in China Telecom, but have WCDA and LTE protocol in the core is much smaller than the proportion of patents EVDO, also a patent owner who, Nokia's patent appeal is 1% of the machine, and collect royalties Interdigital lower overall price of 0.029% to Qualcomm has been able to receive 5% of the high royalties, because of its unique business model result, the value is not determined by its patent.

Wang Yanhui, told reporters that the current charging mode, and some seemingly unrelated parts Qualcomm Qualcomm patents as to charge 5% of the royalties.

In addition, Wang Yanhui believe that Qualcomm's patents dynamic changes every year, every year there will be old patents expire, there are additional patents, not every patent is related with the phone, although mainland manufacturers to pay a huge amount of royalties, they did not understand their own pay a fee for those Qualcomm's patents, because Qualcomm does not provide a list of patent royalties paid mobile phone manufacturers, but does not indicate what those are nonstandard standard patent patent.

There are mobile phone manufacturers, told reporters that if Qualcomm's patent licensing fees high, is bound to increase the domestic mobile phone manufacturers operating pressure. Currently, the domestic mobile phone manufacturers have entered the competition stage scale low margin, 4G terminals in thousands machine age.

Moran Cove yesterday at the press conference, Qualcomm willing to share, hoping to become an innovation enabler, rather than technology firmly in their own hands. He said that in the Chinese market, many leading manufacturers of high-technology licensing, Qualcomm will continue to increase investment in China, in addition to the SMIC international co-production Xiaolong processors, will invest $ 150 million in the future to support China's domestic The start-up companies.

Nonetheless, industry insiders said if you do not respond, Qualcomm will continue to face heavy fines. Publicly available data, the high-pass turnover may exceed $ 20 billion if the final determination Qualcomm constitute a monopoly, maybe China will break "Antitrust Law" since 2008 fine record.

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