South Korean FTC may slap Qualcomm with one trillion won fine

The South Korean Fair Trade Commission has completed a 17-month long investigation into the way Qualcomm licenses its patents, and is on the verge of imposing a fine of one trillion won ($900 million, or Rs 6048 crore) for unfair abuse of licensing rights. The South Korean FTC started investigating Qualcomm after partners in the country complained against Qualcomm for overcharging to use their patents.

The FTC hopes to close the case by the end of the year, and is deliberating on the quantum of the fine to be imposed, according to a report in Telecom Paper. The verdict will be delivered on the 20 July, according to a report in Android Authority. One trillion won is approximately the amount of extra fees collected by Qualcomm from South Korean manufacturers. The way Qualcomm charged for the use of these patents is under the scanner. Apparently Qualcomm charged on a suggested retail price instead of deciding the price based on the chipset used. Also under investigation is the way Qualcomm licenses these patents to its affiliates.

If Qualcomm is imposed with a fine of one trillion won, it will be the most that a technology company has paid the South Korean FTC. Qualcomm has previously paid up a $1 billion (Rs 6721 crore) fine in China for similar patent rights abuses.