LG’s 5G phones could be in jeopardy because of Qualcomm


LG V50 ThinQ 5G logo closeup

  • LG has opposed Qualcomm’s efforts to appeal against an
    antitrust ruling.
  • LG says it failed to reach an agreement to renew a chip
    licensing deal with Qualcomm under the terms of the ruling.
  • The Korean firm says it might be forced to renew the deal on
    the chip designer’s terms.

Sales of LG’s V50
ThinQ
5G smartphone are reportedly in doubt after negotiations
to renew a chip licensing deal with
Qualcomm
fell through.

According to
Reuters
, the South Korean firm has completed a court filing in
the U.S. opposing Qualcomm’s bid to set aside a landmark
antitrust ruling
against the chip designer.

“If Qualcomm does not participate in negotiations with LGE in
accordance with the court’s order, LGE will have no option but to
conclude license and chipset supply agreements once again on
Qualcomm’s terms,” read an excerpt of the filing, according to
the newswire.

Last month’s antitrust ruling found that Qualcomm had charged
“onerous” fees to companies wanting to use its patents. Judge
Lucy Koh also ruled that the U.S. firm needs to sign new patent
licensing deals without the offending terms.

LG is calling on Qualcomm to abide by this ruling, while the
Qualcomm seemingly thinks that it’s still the status quo for now
until it’s exhausted its options to appeal the verdict.

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It’s unclear when this impasse will come to an end, but LG is
certainly in a bad position. If the court battle isn’t resolved
soon, then the South Korean manufacturer will be forced to delay
the LG V50 ThinQ and potentially other 5G-related devices too. It
isn’t clear if the deal relates to 5G technology only or 4G
devices as well, but an analyst told Reuters that LG’s mobile
business could suffer “catastrophic” damage if a deal isn’t
reached. This suggests that LG’s 4G devices, which forms the bulk
of its smartphone shipments, are also affected by the legal
battle.

This battle could also be a sign of things to come if
Qualcomm’s deals with other manufacturers are up for renewal
soon. It’s one thing for LG
duke it out with Qualcomm, but it’s another matter entirely if
other players decide to challenge the chipmaker in accordance with
the antitrust ruling.

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Source: FS – Android
LG’s 5G phones could be in jeopardy because of Qualcomm