SAN DIEGO, Sept. 4, 2017 /PRNewswire/ -- Qualcomm Incorporated (NASDAQ: QCOM) today announced that the Seoul High Court (Court) has denied the Company's application to stay the operation of the remedial order issued against it by the Korea Fair Trade Commission (KFTC). Qualcomm will file an immediate appeal of the stay decision to the Korea Supreme Court.
The Court denied Qualcomm's stay application after finding that the Company's business will not suffer irreparable harm if the KFTC's order remains in effect. The KFTC's order reviewed by the Court does not invalidate any existing license agreements, does not prohibit Qualcomm from entering into licenses for its standard essential patents (SEPs) and other patents at the device level and does not limit the royalties Qualcomm can seek or collect for SEPs under its current or future licenses as long the license agreements are consistent with Qualcomm's FRAND commitments. As the Company has described in its prior public financial statements, the order requires Qualcomm to engage in good-faith negotiations with chip companies seeking a license and to negotiate possible amendments with current licensees upon request.
The Court's decision to deny Qualcomm's stay application does not impact Qualcomm's appeal of the underlying KFTC decision, which the Seoul High Court will consider later. Qualcomm continues to believe that the KFTC's decision is not supported by the facts and law, and was the product of a hearing and investigation that denied Qualcomm fundamental due process rights. Qualcomm also intends to preserve and pursue its arguments that the KFTC's underlying decision exceeds its authority and principles of international law by inappropriately seeking to regulate intellectual property rights arising under the laws of other nations, including the United States.
Qualcomm's technologies powered the smartphone revolution and connected billions of people. We pioneered 3G and 4G – and now we are leading the way to 5G and a new era of intelligent, connected devices. Our products are revolutionizing industries, including automotive, computing, IoT, healthcare and data center, and are allowing millions of devices to connect with each other in ways never before imagined. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, all of our engineering, research and development functions, and all of our products and services businesses, including, our QCT semiconductor business. For more information, visit Qualcomm's website, OnQ blog, Twitter and Facebook pages.
Peter Lancia, Corporate Communications
John Sinnott, Investor Relations
SOURCE Qualcomm Incorporated