Qualcomm’s Amazing Contracts

Some of Qualcomm’s contractual conditions have been jaw-dropping.

It was revealed some time back by the Japanese trade authorities that, in its CDMA licensing contracts with Japanese hand-set makers, Qualcomm had a clause which stated effectively: ‘We can take all your IP but you can only use from our IP what we specifically license to you’.

Now the Korean FTC has revealed that contracts between Samsung and Qualcomm prevented Samsung from selling its own Exynos hand-set processor to third parties.

Qualcomm has denied it ever stopped Samsung from selling Exynos to third parties but the KFTC said that Qualcomm told Samsung that Samsung would have to pay any royalties due on Exynos if Exynos purchasers refused to pay them.

Samsung is not only a big buyer of Qualcomm chips it also makes Qualcomm chips as a sub-contract manufacturer.

It’s amazing, in these circumstances, what Qualcomm was able to get away with.

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