Qualcomm’s patent portfolio globally is a whopping 140,000+ patents and patent applications. It might not be the largest patent portfolio by number of patents, it by far has the most valuable patents. On top of 5G technologies, Qualcomm’s patent portfolio covers a wide array of technology areas, including multi-media, RF, compute, graphics, position location, and Wi-Fi. John Han makes a great point when he says that not all patents are created equal.
It keeps patent holders and implementors from taking advantage of a standard by exerting unreasonable demands. Without FRAND commitments, unreasonable terms could keep the industry from moving forward and innovating. But FRAND brings fair, reasonable, and non-discriminatory clarity to commercial negotiations and, in the process, encourages both sides to continue innovating.
Companies are required to commit their standard essential patents to FRAND terms, and these terms are a two-way street. Implementers have a FRAND obligation just as patent holders have a FRAND obligation. Han explains how these implementors and patent holders, licensees and licensors, relationships can be hindered by misbehaving and not holding to the FRAND commitment. The industry calls this “holding up and holding out”.
What is sometimes argued is that FRAND terms don’t work, and that there is a problem with licensing technology. Han highlights that “what has been abundantly clear after years of heated debate with the economists, the IP experts, and industry pundits—there is no evidence showing that hold up actually even exists, because the vibrant mobile ecosystem proves contrary.” Court rulings are even positive for SEP holders and further validate its longstanding licensing program.
QTL can be a tough area to explain and is sometimes criticized when not fully understood. QTL, simply put, licenses out technologies that Qualcomm has been researching and developing for the past ten years or longer, to OEMs who can implement that technology through products for the market place. Qualcomm is more times than not on top when it comes to the licensing business, and it doesn’t hold this title by having the most patents.
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