Qualcomm has agreed to changes in its licensing terms and investments in Taiwan in order to settle the competition claims from the Taiwan Fair Trade Commission. As a result, the TWD 23.4 billion fine imposed against the chipmaker last year will be sharply reduced.
Qualcomm had appealed the fine and entered negotiations on a settlement with the TFTC. The company has agreed to certain "process-related commitments" in its negotiation of handset licensees with manufacturers on its standard-essential patents. Qualcomm said this does not require component-level licensing or set specific financial terms; instead it focuses on commitments that ensure good-faith negotiations for the benefit of licensees and SEP owners.
As part of the settlement, the parties agreed that the NTD 2.73 billion (USD 93 million) Qualcomm paid towards the fine through the end of July will be retained by the TFTC and no other amounts will be due.
In addition, Qualcomm will lead certain commercial initiatives in Taiwan over the next five years for the benefit of the mobile and semiconductor ecosystem, SMEs and consumers, including 5G collaborations, new market expansion, start-up and university collaborations and the development of a Taiwanese centre for operations and manufacturing engineering. Qualcomm will work with the TFTC and sister agencies within the Taiwanese government to implement these initiatives and investments.
