Qualcomm Appeal Denied by Seoul High Court, New Appeal in Process

According to a recent release, the Seoul High Court has denied Qualcomm’s application to stay the operation of the remedial order issued against it by the Korea Fair Trade Commission (KFTC). Qualcomm will file an immediate appeal of the stay decision to the Korea Supreme Court. 

The Court denied Qualcomm's stay application after finding that the company's business will not suffer irreparable harm if the KFTC's order remains in effect. The KFTC's order reviewed by the Court does not invalidate any existing license agreements, does not prohibit Qualcomm from entering into licenses for its standard essential patents (SEPs) and other patents at the device level and does not limit the royalties Qualcomm can seek or collect for SEPs under its current or future licenses as long the license agreements are consistent with Qualcomm's FRAND commitments. As the company has described in its prior public financial statements, the order requires Qualcomm to engage in good-faith negotiations with chip companies seeking a license and to negotiate possible amendments with current licensees upon request.

The Court's decision to deny Qualcomm's stay application does not impact Qualcomm's appeal of the underlying KFTC decision, which the Seoul High Court will consider later. Qualcomm continues to believe that the KFTC's decision is not supported by the facts and law, and was the product of a hearing and investigation that denied Qualcomm fundamental due process rights.

Qualcomm said it also intends to preserve and pursue its arguments that the KFTC's underlying decision exceeds its authority and principles of international law by inappropriately seeking to regulate intellectual property rights arising under the laws of other nations, including the United States.