(Reuters) – Qualcomm Inc. won a partial wait against the implementation of resistance control in a trial given by the US Federal Trade Commission (FTC), according to Friday court filing.
FILE FILE: A woman walks over a notice advertising Qualcomm at the World Mobile Conference (MWC) in Shanghai, China June 28, 2019. REUTERS / Aly Song
The company lost on 21 May in an anti-trust practice and is fighting to suspend the ruling when appealing.
The San Diego-based company argued that allowing the control stand to apply talks to phone manufacturers over chips for 5G, could be the next generation of wireless networks.
In the regulation issued Friday, the 9th Court of Appeal of the United States put in place the provisions of the previous regulation which required Qualcomm to grant patent licenses to guarantee chip suppliers and eliminate its practice to require Chip customers sign a patent license before buying chips.
The earlier control would require Qualcomm to renegotiate all its chip and patent dealings, as well as to make new dealings as necessary. The stay granted Friday gives effect to parts of the control in place and the appeals process, which may take a year or more, to operate.
Qualcomm's case was unique in that different parts of the US government had different views. The Department of Justice – the main anti-thrust regulator in the United States – said during the initial trial that it did not agree with the FTC's legal theory. And after the trial judge made a decision, the Pentagon and the Department of Energy filed saying that the decision would prejudice national security.
“The government itself is divided into the appropriateness of the judgment and its impact on the public interest,” the court of appeal wrote in its ruling.
The shares rose briefly after the news but then they fell 3.7% to $ 74.29 in evening trade on the Nasdaq. These fluctuations were volatile this year, rising from the range of $ 50 to over $ 85 after Qualcomm made a major legal solution with Apple Inc, but then they dropped to the mid- $ 60 after the case has given the FTC a loss.
The company has not formally filed its appeal in the FTC lawsuit. After Qualcomm filed its arguments, the appeal will be made in January.
In a statement, Donchoenberg, Qualcomm's general advocate, said that the company believes that “the decision of the district court will be lifted when the merits of our appeal are taken into account.”
Reporting at Sayanti Chakraborty in Bengaluru and Stephen Nellis in San Francisco; editing with Tom Brown and Chizu Nomiyama
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