FTC v. Qualcomm: Trial and Possible Implications

January 2019

FTC v. Qualcomm: Trial and Possible Implications By Jay Jurata (Orrick Herrington & Sutcliffe)¹

Nearly two years after the Federal Trade Commission (“FTC”) brought its unfair competition case against Qualcomm, the case has proceeded to trial. Despite the ongoing partial shutdown of government operations, the trial began on January 4, 2019, before the Honorable Lucy Koh in the Northern District of California. This article analyzes important developments in the case as it has proceeded – including the significant motion to dismiss and partial summary judgment rulings – and offers thoughts on the just commenced trial.

Motion to Dismiss Ruling

The FTC sued Qualcomm in January 2017, on the eve of a change in administration. It alleged anticompetitive behavior in connection with Qualcomm’s licensing program covering wireless communication standard-essential patents (“SEPs”) subject to a commitment to license on fair, reasonable, and non-discriminatory (“FRAND”) terms. The FTC brought its complaint under Section 5 of the FTC Act, which prohibits “unfair methods of competition,” as opposed to bringing an express claim for a violation (or violations) of Sections 1 and/or 2 of the Sherman Act (which prohibits agreements that unreasonably restrain trade and various forms of monopolization, respectively).

The FTC’s allegations largely center on (1) Qualcomm’s “no license-no chips policy,” under which Qualcomm allegedly conditions customers�