INTERNATIONAL - The US Federal Trade Commission’s antitrust case accusing Qualcomm Inc of abusing a monopoly on mobile chip technology is expected to head to the courtroom on Friday for a trial whose outcome could have a major impact on the smartphone industry.
If the government prevails in the non-jury trial before US District Judge Lucy Koh, in San Jose, California, Qualcomm could be forced to change its practices for licensing a trove of patents to manufacturers like iPhone maker Apple Inc.
Apple will be closely watching the FTC case, as it has its own pending lawsuit making similar claims against Qualcomm.
The outcome of the case will have a major impact on any settlement discussions between Apple and Qualcomm, Canaccord Genuity analyst T. Michael Walkley said in a research note.
Though well known as a maker of smartphone chips, Qualcomm derives more of its profits licensing patents to other companies.