NAMA : NURAINI JAFAR

STUDENT ID: 02042211066

CLASS : III BILINGUAL

LECTURER : ROBERT LENGKONG WEKU, SH., MH

SUBJECT : INTERNATIONAL BUSINESS LAW

Title: Apple vs. Qualcomm Case (2017): Issues, Analysis, Solutions, and
Recommendations

The legal case between Apple and Qualcomm in 2017 reflects a significant conflict that has
raised a range of issues in the technology and telecommunications industry. This dispute
encompasses various highly complex issues, including patent claims, market competition,
monopolies, licensing agreements, and their impact on consumers. In this essay, we will
outline the key issues, conduct an in-depth analysis, and present solutions and
recommendations for the resolution of this conflict.

Key Issues

1. Patent Claims

The case began with patent claims made by Apple, accusing Qualcomm of exploiting its
dominant position as the primary holder of patents in the chip modem market. These patent
claims have raised questions about the validity of patents and the use of patented technology
in the telecommunications industry.

2. Monopoly and its Impact on Market Competition

The issue of monopoly arises as Qualcomm dominates the chip modem market. This case has
created doubts about whether this dominance is being used to hinder competitors from
entering the market or reduce innovation in wireless technology. This poses a threat to
healthy market competition and innovation.

3. Controversial Licensing Agreements

Controversial licensing agreements between Qualcomm and mobile device manufacturers,

including Apple, play a crucial role in the dispute. Apple alleges that Qualcomm employs
exclusive licensing practices and pressures companies to pay royalties for technology that is
irrelevant to chip modems. These licensing agreements have become a significant source of
conflict and disagreement.

4. Impact on Consumers
Consumers are also victims in this dispute. If Apple is compelled to pay higher royalties to
Qualcomm, it could result in increased prices for Apple products, such as the iPhone. This
impact may lead consumers to pay more for the same technology.

5. Global Implications

This case has global implications as it involves multinational technology companies

operating worldwide. Disputes like these attract the attention of numerous countries, which
may attempt to regulate technology companies' business practices more strictly.

Analysis

This case reflects a complex debate involving patent rights, business practices, market
competition, and global consumer protection in a rapidly evolving technology industry.
Fundamentally, the issue revolves around determining whether Qualcomm has exploited its
monopoly position in the chip modem market. This case underscores the need for effective
regulation and consumer protection in the expanding technology industry.

Solutions and Recommendations

 Legal Resolution: A legal resolution through the court is the initial step to be
taken. The court needs to thoroughly assess whether Qualcomm has indeed
exploited its monopoly position and whether its royalty practices violate the law.
This is a crucial step in determining the validity of Apple's claims.
 Negotiation: To achieve a mutually beneficial agreement, Apple and Qualcomm
can attempt to negotiate and settle the dispute outside of court. Wise negotiation
and fair compromise can offer a quicker and more effective way forward than
lengthy court proceedings.
 Stringent Regulation: Governments should consider more stringent regulation
regarding monopolies and patent rights. This can help prevent monopolistic
practices and ensure healthy market competition.
 Transparency: Both parties should enhance transparency in their relationships and
provide clearer details about licensing agreements. This will enable better
oversight and understanding regarding royalty payments and patent rights.

Conclusion

The Apple vs. Qualcomm case represents a complex conflict in the technology and
telecommunications industry. The resolution of this case requires a careful and balanced
approach to address patent issues, competition, consumer protection, and global implications.
Efforts for a more effective resolution and wise regulation are key to addressing this dispute
and ensuring the healthy development of the industry.
Bibliography

United States International Trade Commission. (2018). "Investigation of Certain Mobile

Electronic Devices and Radio Frequency and Processing Components Therein (Apple
vs. Qualcomm)."