A u.S. Federal choose ruled on Tuesday that chip vendor Qualcomm must license a number of its generation to competition which includes Intel Corp.

The preliminary ruling got here in an antitrust lawsuit against Qualcomm delivered via america Federal alternate fee in early 2017. The lawsuit is scheduled to go to trial next year.

The initial ruling by means of judge Lucy Koh in the US District court for the Northern District of California stated that Qualcomm must license a few patents concerned in making so-known as modem chips, which help smartphones connect to wi-fi facts networks, to rival chip corporations.

Qualcomm and the FTC had mutually requested Koh closing month to put off ruling on the issue for up to 30 days while they pursued agreement talks.

Koh denied that movement on Tuesday.

It changed into no longer immediately clean whether the ruling might have an effect on the agreement talks. Qualcomm shares were down about 0.3 according to cent to $63.26 after the news. Qualcomm did not immediately go back a request for comment. The FTC and Intel declined to remark.

Settling with US regulators would be a turning factor for the San Diego chip company, which has been protecting its business version amid court cases from big customers such as Apple and Huawei technologies, in addition to coping with regulatory challenges to its practices round the world.

At issue within the civil litigation and regulatory disputes is whether or not Qualcomm’s patent licensing practices, whilst combined with its chip business, represent anti-competitive behaviour. Regulators in South Korea and Taiwan to start with ruled in opposition to Qualcomm, however it has appealed the rulings and settled a number of them.

In August, Qualcomm settled with Taiwanese regulators for $ninety three million and an settlement to invest $seven hundred million inside the united states over the following 5 years.