Facing Qualcomm: Patent Licensing and the Development of Anti-Monopoly Law in China (A)
This case introduces Qualcomm's licensing practices in the mobile telecom sector, with a focus on the Chinese market. The point of view adopted is that of the partners of the fictitious Xiao Xing, a Chinese mobile phone start-up that has no sales yet but requires Qualcomm's chips in order to prototype its product. There are two cases. The main issues examined in Case A are: (a) the sort of questions and issues that entrepreneurs must examine when planning a technology start-up, including financing, location, and access to seed money; and (b) the terms under which Qualcomm's chips can be procured, and the problems posed by such terms, especially regarding the royalties involved, cross-licensing provisions included in their standard agreements, and their impact on the viability of the start-up.