Intel: Qualcomm's Unfair Licensing Practices Forced Us out of the Modem Chip Market

[Tsing]

Why did Intel sell its modem chip unit to Apple in July at a multi-billion dollar loss? According to the company's recent filings, Qualcomm is entirely to blame: the mobile technology giant allegedly forced Intel out of the market with its patent licensing "scheme," which prevented fair competition. Intel ultimately conceded to Qualcomm when it managed to not only win an appeal against the FTC, but a chip supply deal with Apple.

“We invested billions, hired thousands, acquired two companies and built innovative world-class products that eventually made their way into Apple’s industry-leading iPhones, including the most recently released iPhone 11,” Steven R. Rodgers, Intel’s general counsel, wrote in the post.

“But when all was said and done, Intel could not overcome the artificial and insurmountable barriers to fair competition created by Qualcomm’s scheme and was forced to exit the market this year.”

 

[Brian_B]

Not too familiar with the case, but seems if you don't want to license the patents, you have the option of clean-rooming your own solution.

That isn't without risk, but it's one way to get around any licensing "schemes" you may not agree with. If your solution isn't competitive, then your engineers just aren't as good as the competition's. Of course Qualcomm would make it prohibitive to compete against them. And you aren't really competing if you are licensing their tech.

Odd how that has some echo to Intel/AMD - where the two are inextricably intertwined in patent licensing, but locked in competing markets (x86 <--> x64)

On the other hand, part of me can't stop thinking this was ultimately Apple pulling some strings and making a big bet and it paying off for them.

 

[Uvilla]

Yeah this has the strong smell of bullshit.
Hey, lets go curb stomping Qualcomm I guess that is the idea.
Sometimes is comes back to bite you though.

 

[Dan_D]

Hearing Intel whine about unfair business practices is pure gold.

 

[Zarathustra]

LOL.

Not so fun to be on the receiving end of unfair business practices, is it, Intel?

Go cry me a river... Intel is the poster child for unfair business practices. To hear then complain about it is hilarious.