The 5G phones from LG could be endangered by Qualcomm

3 min read

  • LG has resisted Qualcomm's efforts to appeal an antitrust ruling.
  • LG says it has failed to sign a chip license agreement with Qualcomm under the terms of the ruling.
  • The Korean company says it can be forced to extend the deal according to the terms of the chip designer.

The sale of the V50 ThinQ 5G smartphone from LG is said to have been questioned after the negotiations to extend a chip license deal with Qualcomm fell.

According to ReutersThe South Korean company has filed a court in the United States that opposes Qualcomm & # 39; s attempt to destroy a notable antitrust rule against the chip designer.

"If Qualcomm does not participate in negotiations with LGE in accordance with the court's order, LGE will have no choice but to re-conclude licenses and chipset delivery agreements on terms of Qualcomm," read an excerpt of the application, the newser said.

Last month's antitrust legislation revealed that Qualcomm had imposed "incriminating" fees on companies that wanted to use its patents. Judge Lucy Koh also ruled that the American firm must sign new patent license agreements without the offensive conditions.

LG appeals to Qualcomm to abide by this ruling, while the Qualcomm believes it is still the status quo until it has exhausted its options to appeal the judgment.

It is unclear when this impasse will end, but LG is certainly in a bad position. If the lawsuit is not resolved quickly, the South Korean manufacturer will be forced to postpone the LG V50 ThinQ and possibly other 5G-related devices. It is not clear whether the deal only concerns 5G technology or 4G devices, but one analyst said Reuters that LG & # 39; s mobile company may suffer "catastrophic" damage if a deal is not reached. This suggests that LG & 4G's 4G devices, which make up most of its smartphone shipments, are also affected by the legal battle.

This struggle can also be a sign of what is to come when Qualcomm & # 39; s deals with other manufacturers are due for renewal soon. It's one thing for that LG did it off with Qualcomm, but it is a different matter if other players decide to challenge the chip maker in accordance with the antitrust rule.

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Written by

Don Bradman

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