David Kreuzer v. Qualcomm, Inc., 17-CV-526 (S.D.Cal.)

Grabar Law Office files an action against Qualcomm for injunctive relief and to recover substantial damages suffered as a result of Qualcomm’s violations of Section 2 of the Sherman Act, state antitrust and consumer laws and the common law of unjust enrichment.

Plaintiff, a purchaser of CDMA- and/or premium LTE cellular devices, including an Apple iPhone 6, Apple iPad Mini 2, and Samsung Galaxy S6, each of which contains a baseband processor (also called a modem chipset), which are semiconductor devices that enable cellular communications in cellphones and other products.  The action alleges that Qualcomm’s unlawful maintenance of a monopoly in baseband processors. It is alleged that Qualcomm has maintained its monopoly by engaging in anticompetitive, exclusionary conduct, including, without limitation: (a) failure to license standard-essential patents to all applicants on fair, reasonable and non-discriminatory (“FRAND”) terms; (b) withholding Qualcomm’s baseband processors unless a customer accepts a license to standard-essential patents on terms imposed by Qualcomm, including excessive and unlawful royalties that the customer must pay when using competitors’ processors (“no license-no chips”); (c) refusing to license its cellular standard-essential patents to competitors, in violation of Qualcomm’s FRAND commitments; and (d) entering into exclusive dealing arrangements, including with Apple Inc., a large and highly important cellphone manufacturer.

It is alleged that Qualcomm’s anticompetitive conduct has caused Plaintiff and Class Members to pay inflated prices for each cellular telephone and cellular device they purchased and has excluded competitors, harmed competition, taxed Qualcomm’s competitors’ baseband processor sales and reduced competitors’ ability to compete and incentive to innovate.

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