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.
After study and class discussion, the students will:
- 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.
- 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.
- Know about the basic traits of anti-monopoly regulation, specifically in connection with the abuse of dominant position through licensing practices.