Antitrust Cases Dismissed Against Qualcomm

This past Tuesday, U.S. District Court Judge William Q. Hayes dismissed three consumer class-action lawsuits against Qualcomm.  The suits, filed in April and November 2008, accused Qualcomm of antitrust violations and unfair competition.  According to Forbes.com, Judge Hayes stated that the claims against Qualcomm were “too remote,” and that the plaintiffs didn’t have any right to compensation under the state’s unfair competition law.

The lawsuits stemmed from patents held by Qualcomm that relate to technology that was included in an industry standard for cell phones.  This technology is necessary for phones that are transitioning from second-generation GSM systems to third generation.  The plaintiffs claimed that Qualcomm refused to license this technology on terms that are fair, reasonable and nondiscriminatory.  Thus, the plaintiffs argued that this refusal resulted in higher prices for consumers.

Qualcomm argued that other technologies and components are involved in the manufacturing and sale of a cell phone, and the higher prices paid by consumers aren’t solely determined by the cost of the license.  The judge agreed with Qualcomm, which immediately rose shares of Qualcomm 3.6%.