“Wireless data” is the defining technology of the smartphone FTC vs. Qualcomm: Is this what the war on innovation looks like?
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“Wireless data” is the defining technology of the smartphone, not just another feature
Why am I explaining the importance of wireless data? In the current FTC trial, the Commission’s lawyers and witnesses put forward two complaints: 1) Licensing fees should be based on the modem’s price, not that of the device, and 2) Qualcomm’s licensing fees are too high. Looking at the first, wireless data is thefundamental and defining technology of any smartphone. Also, it is a misconception to think that wireless data technology is only contained within the “modem” block. In reality, the functionality is the result of a comprehensive system design that makes the smartphone work as a complete device, with all subsystems and software in it. Additionally, the design includes complex interactions with numerous infrastructure and network (radio, core, and cloud) elements to function as a well-orchestrated system. So, it would be disingenuous and utterly ridiculous to limit the value of all of this technology to a small percentage of the price of a modem.
On the licensing fees argument, fees should be determined by the value the technology imparts to the overall usefulness of the device, and not correlated with a single isolated part. Also, the valuation of wireless technology should be market-driven, not arbitrarily or subjectively determined by the FTC or other regulatory authority. If you accept the notion of regulatory price-fixing, then why stop with Intellectual Property (IP)? Why not also regulate the price of smartphones? If you look at the recent price increases, it may not be a bad an idea after all! Jokes aside, as witnessed by the spectacular proliferation of smartphones over the last decade, market pricing of wireless technology IP has benefited the mobile industry and the consumers.
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https://www.rcrwireless.com/20190121/analyst-angle/ftc-qualcomm-apple-analyst-angle