Qualcomm, Taiwan Fair Trade Commission reach settlement
Qualcomm announced that it has reached a mutually agreed settlement with the Taiwan Fair Trade Commission, or TFTC, resolving the TFTC's investigation of Qualcomm and Qualcomm's litigation challenging the TFTC's decision alleging violations of Taiwan's Fair Trade Act. As a result, the whole TFTC decision is replaced by the settlement terms and the decision shall be deemed revoked ab initio and Qualcomm's litigation filed in the Taiwan Intellectual Property Court is closed. As part of the resolution, Qualcomm has agreed to certain process-related commitments confirming principles of mutual good-faith and fairness in the negotiation of agreements with handset licensees to Qualcomm's cellular standard essential patents, or SEPs. The resolution does not require component-level licensing or set specific financial terms; instead it is focused 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 approximately $93M Qualcomm paid towards the monetary fine through the end of July will be retained by the TFTC and no other amounts will be due. In addition, Qualcomm will drive 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 center for operations and manufacturing engineering. Qualcomm will work with the TFTC and sister agencies within the Taiwanese government to implement these initiatives and investments.