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Facing Qualcomm: Patent Licensing and the Development of Anti-Monopoly Law in China (A)

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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.

Learning Objective:

After study and class discussion, the students will:

  1. Be aware of the key role of intellectual property licensing in technological innovation and be familiar with some of the ways to acquire, protect, and use such intellectual property.
  2. Be conversant with the opportunities and challenges associated with the creation and development of a technology start-up, including the composition of the start-up management team and the search for capital.
  3. Know about the basic traits of anti-monopoly regulation, specifically in connection with the abuse of dominant position through licensing practices.

Year of Publication: 2020
Ref. No.: 20/655C
Discipline: Production & Operations Management
Industry: Technology Hardware
Country: China (People's Rep. of)
Company: Qualcomm
Languages: English
Pages of Text: 5