Is Qualcomm Abusing its Power in the Smartphone Space?

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Qualcomm owns many of the crucial patents for modern wireless communications. But many companies, including Apple, think that Qualcomm is abusing it’s position.

However, China finds otherwise.

Qualcomm successfully argued to the Chinese government its intellectual property coverage would protect those handset makers, allowing them to penetrate overseas markets.

Apple has argued its former supplier unfairly leverages its position as the biggest supplier of chips for smartphones to force payment.

Qualcomm has countered that Apple is using its intellectual property without paying for it, and the legal cases are aimed at forcing it to lower licensing charges.

Apple’s iPhone and similar products rely on technologies that Qualcomm owns the patent for. Many see that Qualcomm is abusing their power, others belief that the company should be paid fairly for the use of its IP.

China is also the production base for most iPhones as well as the iPad and Mac. Apple warned that the ban would hurt manufacturers like Hon Hai Precision Industry Co. — known also as Foxconn — and other suppliers.

Qualcomm is adamant that Apple and other smartphone produces must pay for the use of its intellectual property and so far the courts in China agree.

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