Judge: Qualcomm may continue to bundle patent licenses with chip sales for the time being

A US judge has ruled that Qualcomm may continue with its practices of bundling patent licenses with the sale of modem chips for the time being. This practice was banned in May, but Qualcomm may continue as long as the appeal is filed.

The San Francisco Court of Appeals has ruled that Qualcomm is not required to comply with an earlier ruling banning the linking of patent licenses to modem chip sales. Although the ban is not off the table, Qualcomm is not yet required to comply with it as long as an appeal is pending.

In May, a US judge banned the tying, arguing that Qualcomm is abusing its power and charging unreasonably high royalties for its patents. The case was brought by the American watchdog FTC. Qualcomm said in a response that it strongly disagreed with the verdict and announced that it would appeal.

In a response, the chip manufacturer says it is happy with the ruling of the Court of Appeal. According to Qualcomm, the ruling ensures that it can continue to invest in 5G technology. Should the appeal be lost, Qualcomm will still have to renegotiate its patent deals with its customers. The case will continue into January next year.