Boston, MA 09/08/2014 (wallstreetpr) – QUALCOMM, Inc. (NASDAQ:QCOM) is alleged of infringing NVIDIA Corporation (NASDAQ:NVDA) patents.
Nvidia has filed a lawsuit against Qualcomm and Samsung Electronics Co Ltd in a U.S. district court. The complaint claims that the two have breached its patents concerning Graphics Processing Units (GPUs), or the graphics display units for computer screens. In this context, Qualcomm’s spokeswoman replied that the company is aware of the filing and is working to probe the matter.
Patent Infringement
Nvidia’s filing points out QUALCOMM, Inc. (NASDAQ:QCOM)’s ‘Snapdragon’ line of products and the chips deployed in its various models. The complaint, which also alleged Samsung of infringing the patents, is targeting its newly launched models ‘Galaxy Note Edge’ and ‘Galax Tab,’ a family of computer tablets. Nvidia intends to point out the chips that Samsung is using in both these products.
Nvidia’s Chief Executive Officer, Jen-Hsun Huang said that its new GPU inventions add great value to mobile devices and the company and the company enjoys patented rights to use the same. However, QUALCOMM, Inc. (NASDAQ:QCOM) and Samsung have deployed the chips in their devices without obtaining a license from Nvidia, he said. He further said that the complaint demands to probe the infringement and also evaluate the licensing value for its chips.
Analysts’ Take
According to an analyst with Needham & Co., Rajvindra Gill, the move holds great significance for Nvidia, as it hints towards the need for an all new licensing strategy for the chip maker. Another analyst from Stifel Nicolaus, Kein Cassidy, proposed that the move could fuel GPU IP licenses from other players. He said that although he court’s ruling time could not be predicted, but he move could create a stir in the market. Some analysts believe that the latest action by the company is targeting a greater sector- almost the entire mobile computing market. Arguments among analysts in this context are suggesting an entirely new opportunity for Nvidia to collect royalty revenues.
