Qualcomm to be punished more macro-comprehensive thinking

Qualcomm, the fair fair will be punished 23.4 billion high price case, so far waves; clapping a lot of good people, worried about the development of industries are blocked. Qualcomm has filed administrative relief, follow-up remains to be seen, but the case both the patent right The competition between competition law and the subtle interaction of the mobile industry is not a case of dichotomy between "good and bad" and its meaning and influence needs to be considered more macroscopically and comprehensively. Penalties are mainly due to Qualcomm's abuse of its market monopoly position in both the "chip" and the "mobile phone" markets, which include refusing to authorize the sale of competitors or competing competitors in the chip market, "Do not provide chips without signing the license agreement" means, and with the exclusive transaction discount terms to block the mobile phone industry to use other chips.

To sum up these allegations simply means that bully in Qualcomm's flesh-and-blood village, by virtue of its exclusive power, can prevent other competitors from snatching business everywhere and at the same time crushing manufacturers that can not afford it. But in fact it may not be that simple: First, the exclusive status of Qualcomm, to some extent, these squeezed manufacturers jointly with the government, and second, if Qualcomm decided to avoid his hometown, the manufacturers are lost or happy, but also a good understanding.

Qualcomm's unique position as a "3G baseband chip" for 3G and 4G handsets involves two key sources of strength, one "standard" and one "patent." Both systems are areas where each country encourages development; since standardization Can reduce the production cost, can improve the product market share, but also can accelerate the popularization of the market.As for the protection of patent rights, it is the best tool to encourage and reward innovative R & D, all should support the system.However, once the standard is combined A patent, that is, a standard that incorporates someone's patent, will produce all those who use the standard production, unless the switch to other standards, or can not avoid the issue of obtaining the patent authorization, resulting in monopoly power .

In the case of Qualcomm, this is the case. "Many of Qualcomm's patents are incorporated into the international (industry) standards for 3G and 4G mobile communications." Of course, 4G mobile communications are not the only industry standard, but Qualcomm patents are The current mainstream, so interested in using the 4G standard mobile phone industry, you must talk with Qualcomm conditions in the case of extreme asymmetry between the two chips, there will be those fish meat in the above behavior. The question is, Qualcomm is not the International Organization for Standardization, therefore The inclusion of patents in the market is favored by the mainstream, relying on strength rather than fists or government forces, and those patents that are included in the standard are indeed Qualcomm's predictions and design innovations. In other words, Qualcomm's exclusive status is because villagers feel that easy to use, coupled with the patent by the state protection system from both.

In fact, being able to plug patents into industry standards and create an endless stream of licensing fees was the ultimate dream for all industry players, and the best incentive to encourage them to innovate with prehistoric power because it is possible There is a risk of abusive status such as the Qualcomm case, but for the most part the benefits to consumers, industry and economy are still outweighed by the costs so we should continue to encourage local industry players to one day obtain exclusive status like Qualcomm.

Back to the case, if Qualcomm did abuse its position, gain improper benefits and discourage rival competition, it should, of course, be subject to competition law. Internationally, in such cases, gradually the terms of the authorization must be consistent with "fair, reasonable and non-discriminatory" Referred to as FRAND) principle, although what is fair and reasonable are extremely abstract concepts, but at least they can serve as a basis for balancing "encouraging innovation" and "safeguarding competition." Finally, the mobile phone operators Both have a great future, Qualcomm "bullying" for so long, to some extent, or with the 4G standard involving Qualcomm patents easy to use; Fair to punish the future of the industry and Qualcomm negotiations is the key to the impact of the negotiations. Can not therefore be overkill and stifle the significance behind such a mechanism in promoting innovation and improving life.

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