Qualcomm Inc. v. Compal Elecs., Inc.

Before the Court is a motion for preliminary injunction filed by Plaintiff Qualcomm Incorporated ("Qualcomm") against Defendants Compal Electronics, Inc. ("Compal"), FIH Mobile Ltd. and Hon Hai Precision Industry Co. (together "Foxconn"), Pegatron Corporation ("Pegatron"), and Wistron Corporation ("Wistron"), collectively "Defendants" or "Contract Manufacturers." Dkt. No. 35-1. The motion has been fully briefed. Defendants filed an opposition on July 18, 2017, as did Third-Party Defendant, Apple Inc. ("Apple"). Dkt. Nos. 72, 80. Qualcomm filed a reply on August 1, 2017. Dkt. No. 100. Based upon a review of the moving papers, the applicable law, and for the foregoing reasons, the Court hereby DENIES Qualcomm's motion.

I. INTRODUCTION

This case arises from a dispute over royalty payments owed under license agreements that Defendants attack as illegal and anticompetitive.

Each Defendant is a customer of Qualcomm. They buy Qualcomm's baseband processor chips, which provide connectivity to cellular networks, in order to manufacture cellular devices. Each Defendant is also a licensee of Qualcomm. In exchange for using Qualcomm's intellectual property to manufacture and sell cellular…