Qualcomm's Legal Troubles Return With a Vengeance [The Motley Fool]
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Qualcomm's Legal Troubles Return With a Vengeance Qualcomm ( NASDAQ:QCOM Judge Lucy Koh stated that Qualcomm could no longer offer exclusive deals to original equipment manufacturers That ruling suggests that Apple abruptly settled Image source: Getty Images. The case against Qualcomm Qualcomm is the world's largest maker of wireless modems and mobile SoCs (system on chips), which bundle together a CPU, GPU, and modem on a single module. It also holds the largest portfolio of wireless patents in the world, which entitles it to a cut of each smartphone sold worldwide. Most of Qualcomm's revenue comes from its lower-margin chipmaking (QCT) business, but it generates most of its profits from its higher-margin patent licensing (QTL) business. The QTL unit's average royalty rate once hovered at about % of a device's selling price (although the price used in that calculation was capped at $00). Smartphone makers, many of which operate at thin margins, argued that Qualcomm should only take i
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