Japanese Court Delays Qualcomm Ruling

Qualcomm, provider of chips for cell phones, said a court in Japan granted a stay on an order that would force the company to revise its contracts with Japanese manufacturers.

SAN DIEGO (AP) -- Qualcomm, which provides chips and other equipment for cell phones, said Thursday that a court in Japan has granted a stay on an order that would force the company to revise its contracts with Japanese manufacturers.

The ruling is on hold until the Japan Fair Trade Commission concludes hearings on the issue and gives a final ruling, the company said.

The process could take years, Qualcomm said.

Last September, the commission accused Qualcomm of using its dominant market position to force manufacturers in Japan to license their technology to Qualcomm without compensation. It ordered the company to remove those provisions from its contracts.

Qualcomm denied the charge, saying in a statement that "none of our Japanese licensees were forced to enter into license agreements with us."

The first hearing on the issue is scheduled for Feb. 17.

Shares of Qualcomm Inc. rose 64 cents to $38.07.

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