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Qualcomm Settles with Taiwan Over Patent Licensing Practices

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Aug 10, 2018, 7:41 AM   by Eric M. Zeman

Qualcomm has reached an agreement with Taiwan to close an investigation concerning its patent licensing practices. Qualcomm will pay a fine of $93 million, and has promised to invest some $700 million in Taiwan over the next five years. Taiwan had accused Qualcomm of improperly pressuring partners that wanted to use its chips with high royalty rates. Taiwan also accused Qualcomm of cutting Apple a discount on royalties to use its chips over that of competing firms. Qualcomm will have to license patents to its competitors, including Intel and MediaTek, at fair and reasonable rates before it takes them to court over fees. Qualcomm will have to provide a report to Taiwan's trade body every six months for the next five years to show that it is adhering to the terms. Qualcomm is facing similar disputes with the U.S. government, the European Commission, and the Korea Fair Trade Commission.

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