Monday, December 24th 2018
A Christmas Gift: Intel Accuses Qualcomm of Stifling Competition
An Intel Newsroom post penned by the company's Steven Rodgers takes a stab at Qualcomm over their patent litigation cases. Titled "Qualcomm's Patent Litigation Campaign isn't Really about Vindicating Intellectual Property Rights", Rodgers cites the number of times Qualcomm has been fined by various authorities around the world, "nearly a billion dollars in China, $850 million in Korea, $1.2 billion by the European Commission and $773 million in Taiwan (later reduced in a settlement) for anti-competitive practices." Citing consequences such as reduced innovation and raised prices for consumers, Intel calls out Qualcomm in that its goal isn't to "vindicate its intellectual property rights, but rather to drive competition out of the market for premium modem chips, and to defend a business model that ultimately harms consumers."
Now, the collective hardware enthusiast memory isn't one to be trifled with, so I will leave it to you to figure out exactly where the irony is in these accusations. Of course, bad history on a company's part doesn't preclude any responsibility from any other company that is currently employing anti-competitive tactics that do, ultimately, stifle innovation and increase prices for consumers. As some Portuguese humorists would say, "one thing is one thing, another thing is another thing". But I'd say, jibbing my way through this, that it takes one to know one.
Source:
Intel Newsroom
Now, the collective hardware enthusiast memory isn't one to be trifled with, so I will leave it to you to figure out exactly where the irony is in these accusations. Of course, bad history on a company's part doesn't preclude any responsibility from any other company that is currently employing anti-competitive tactics that do, ultimately, stifle innovation and increase prices for consumers. As some Portuguese humorists would say, "one thing is one thing, another thing is another thing". But I'd say, jibbing my way through this, that it takes one to know one.
45 Comments on A Christmas Gift: Intel Accuses Qualcomm of Stifling Competition
That's a bit much, isn't it? Oh, the irony …
That's precisely what Intel did ever since. Intel not just vindicated its intellectual property rights like the X86-µArch, but used it to drive every competition out of the market to exclusively sell their premium chips (the Intel inside™-brand comes to mind…) as a monopolist for horrendously overblown prices while ultimately harm customers for decades.
Smartcom
This Intel Newsroom article goes back almost two years revolving around everyone and their dog having to pay money to Qualcomm for 3G, 4G, and soon 5G radios because Qualcomm owns patents that have been generally enforced. Even if you design and manufacture your own wireless radios, you still have to pay Qualcomm for every chip sold to license their patents.
Everyone is jumping on the anti-Qualcomm bandwagon because pillars of modern technology are so ubiquitius that patents should be moved to the public domain (or bare minimum, license fees should be reasonable and not stifling). Apple ended up in court because it outright refused to keep paying Qualcomm for what is fundamentally Apple's own technology. The fact Apple would rather go to court paying legal fees and potential damages over paying the license is a pretty strong indicator of how absurd Qualcomm licensing fees are.
ARM is not public domain and nor is x86. Intel's reasons for putting this article up have nothing to do with CPUs. Intel is trying to raise awareness and public discourse so FTC decides against Qualcomm: Products like the Microsoft Surface are sold with 4G antennas. For every chip Intel produces with one, they have to pay Qualcomm a license fee.
I tried to find out how much the license is costing and turned up this link:
www.cnet.com/news/qualcomm-cuts-cap-for-phone-licensing-fees-hopes-to-settle-with-apple-this-year/ From this, we can garner that the license fee isn't a fixed amount per device, it's based on the MSRP of the device as sold to customers. We also know that Qualcomm is trying to appease Apple, Samsung, and Intel by capping the amount of MSRP they collect fees on.
Digging deeper, another source:
finance.yahoo.com/news/apples-qualcomms-ugly-fight-may-end-drawing-blood-214616652.html 5% of $400 = $20 to Qualcomm of every $400 + device and that's just in fees, not actually hardware to do it. That's significant and might be the motive behind Apple pushing for more expensive phones (they keep a larger share of every phone sold).
That makes Qualcomm bad, right?
:kookoo:
They should be able to charge whatever they like. Apple does, Intel does, even AMD. ASUS, MSI, and all! Sure Tech manufacturing has cost but, the cost to the consumer is crazy since there are 1000's of people, pushing paper around, on the payroll.
Some say the corporate structure works, unless you are the cog, or the consumer.
:lovetpu:
Perhaps Apple and Samsung wouldn't have sued if it were a reasonable license fee (e.g. fixed $5/device). The fact it is MSRP-based, even though the technology being licensed doesn't change based on MSRP, makes Qualcomm's pricing scheme very unreasonable.
Qualcomm already lost one FTC lawsuit with the FTC ordering Qualcomm to license modem tech to competitors (this is what Intel got in trouble for and to this day, is enforced). Qualcomm's patents are the reason why Intel's 4G chips underperform Qualcomm. Intel has to deliberately make them less efficient by not doing things Qualcomm has a patent for because Qualcomm refuses to license the patents to Intel.
The next FTC lawsuit the OP is about is whether or not Qualcomm established a trust and abused their market position. This includes determining whether or not Qualcomm's licensing fees are "reasonable."
Basically, don't discount the message just because of who it's coming from. Especially in this case as Intel is actually still a rather minor player in terms of market share here - they aren't even listed on most reports, instead simply falling in the remnant 'other' category behind Qualcomm, Samsung LSI, and Mediatek.
However whatever line there may be I agree Qualcomm crossed it long ago. Just playing some friendly devils advocate...