TLDR:
- Qualcomm gains after UK lawsuit over royalties withdrawn.
- UK consumers’ case against Qualcomm over royalties ends without compensation.
- Qualcomm’s stock rises as UK legal overhang is removed.
- Qualcomm clears UK legal hurdle, stock up 0.97%.
- UK lawsuit withdrawal boosts Qualcomm’s legal outlook and stock.
QUALCOMM Incorporated (QCOM) rose in midday trading after a UK consumer lawsuit against the company moved toward withdrawal. The stock traded at $142.07 at 12:00 PM EST, marking a 0.97% gain. The development removes a legal overhang tied to royalty practices involving major smartphone manufacturers.
Qualcomm Stock Advances After UK Claim Withdrawal
Shares of QUALCOMM Incorporated (QCOM) advanced after confirmation that a London lawsuit will be withdrawn. The case had accused the chipmaker of abusing a dominant market position. However, the claimant agreed to end proceedings without any payment to consumers.
The British consumers’ association filed the claim on behalf of about 29 million device buyers. It targeted purchases of iPhones from Apple Inc. (AAPL) and Samsung Electronics Co., Ltd. (005930.KS) since 2015. The group initially sought up to 480 million pounds in compensation.
Later concluded that the tribunal would likely reject its arguments. It stated that Qualcomm’s practices did not breach competition law. As a result, it agreed to withdraw the action before a final ruling.
Background of the Royalty Dispute and Tribunal Proceedings
The lawsuit centered on Qualcomm’s global licensing model for standard essential patents. Complainant argued that the company required manufacturers to accept licenses under a no-license, no-chips framework. It claimed this structure inflated royalty payments and device prices.
Qualcomm maintained that it lawfully required licenses before selling chipsets. The company argued that manufacturers must secure patent rights covering cellular standards. It stated that the complaint mischaracterized long-standing commercial arrangements.
The UK Competition Appeal Tribunal heard arguments during a trial last year. However, it had not issued a decision before the withdrawal request. The agreement ends the case without a formal judgment.
Broader Legal Context and Market Reaction
The withdrawal aligns with prior outcomes in other jurisdictions involving Qualcomm’s licensing model. In the United States, courts have upheld similar practices in past disputes. A comparable consumer lawsuit in California ended in dismissal during 2023.
That California case challenged patent licensing and exclusive chip supply agreements. It also involved dealings between Qualcomm and Apple Inc. (AAPL). The court dismissed the claims, reinforcing earlier rulings favoring the chipmaker.
Following the UK development, Qualcomm stock posted modest gains during midday trading. The shares traded at $142.07, up 0.97% by early afternoon. The resolution narrows ongoing legal exposure and clarifies the company’s position in the UK market.
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