(Reuters) – A U.S. federal judge ruled on Tuesday that chip seller Qualcomm Inc <QCOM.O> must license many of its technology to competitors such as Intel Corp <INTC.O>.
The preliminary ruling arrived in an antitrust lawsuit against Qualcomm stemmed from the U.S. Ftc in early 2017. The lawsuit is scheduled to visit to trial this year.
The preliminary ruling by Judge Lucy Koh in the U.S. District Court for any Northern District of California asserted Qualcomm must license some patents involved in making so-called modem chips, that help smartphone’s get connected to wireless data networks, to rival chip firms.
Qualcomm and the FTC had jointly asked Koh last month to delay ruling within the issue for about 1 month as they definitely pursued settlement talks.
Koh denied that motion .
It has not been immediately clear whether or not the ruling would customize the settlement talks. Qualcomm shares were down about 0.3 % to $63.26 right after the news.
Qualcomm didn’t immediately return a obtain comment. The FTC and Intel declined to comment.
Settling with U.S. regulators will be a turning point to the Hillcrest chip firm, that is defending its business amid lawsuits from large customers just like Apple Inc <AAPL.O> and Huawei Technologies Inc, along with working with regulatory challenges to its practices around the globe.
At issue in the civil litigation and regulatory disputes is whether or not Qualcomm’s patent licensing practices, when combined with its chip business, constitute anticompetitive behavior. Regulators in South Korea and Taiwan initially ruled against Qualcomm, nevertheless it has appealed the rulings and settled a number of them.
In August, Qualcomm settled with Taiwanese regulators for $93 million plus an agreement to shell out $700 million near your vicinity covering the next incomes.
(Reporting by Stephen Nellis; Editing by Susan Thomas and Paul Simao)