In re Qualcomm Antitrust Litig.

In re Qualcomm Antitrust Litig.

Opinion

 [*285]  ORDER GRANTING PLAINTIFFS' MOTION FOR CLASS CERTIFICATION; DENYING QUALCOMM'S MOTION TO STRIKE THE DECLARATION OF KENNETH FLAMM

Re: Dkt. Nos. 524, 643

Plaintiffs Sarah Key, Terese Russell, Carra Abernathy, Leonidas Miras, and James Clark (collectively, "Plaintiffs") bring a putative class action against Defendant Qualcomm Incorporated ("Qualcomm") alleging antitrust violations. Before the Court are (1) Plaintiffs' motion for class certification; and (2) Qualcomm's motion to strike the declaration of Kenneth Flamm. Having considered the parties' briefing, the relevant law, and the record in this case, the Court GRANTS Plaintiffs' motion for class certification and DENIES Qualcomm's motion to strike the declaration of Kenneth Flamm.

I. BACKGROUND

A. Factual Background

This case requires understanding the complicated interaction between cellular communications standards, standard essential patents ("SEPs"), and the market for baseband processors, [**17]  or "modem chips." The Court begins by discussing cellular communications standards and modem chips generally. Then, the Court discusses Qualcomm's cellular communications SEPs and Qualcomm's participation in the markets for modem chips.  [*286]  Next, the Court discusses Plaintiffs' allegations that Qualcomm has used its cellular SEPs and its modem chips monopoly to harm competition in certain modem chips markets. Finally, the Court discusses Plaintiffs' allegations that Qualcomm's conduct has caused them harm by raising the prices paid for products containing modem chips.

1. Cellular Technology and the Baseband Processor Industry Generally

i. Cellphone Networks

Cellular communications depend on widely distributed networks that implement cellular communications standards. ECF No. 490 ("FAC") ¶ 33. Cellular communications standards have evolved over four "generations." Id. ¶ 35. "First-generation cellular communications standards were developed in the 1980s. These standards support analog transmissions of voice calls." In re Qualcomm Antitrust Litig., 292 F. Supp. 3d 948, 955 (N.D. Cal. 2017) (citation omitted).

Second-generation ("2G") cellular communications were developed in the early 1990s. FAC ¶ 36. 2G cellular communications standards support digital transmissions [**18]  of voice calls. Id. The leading 2G standards are the Global System for Mobile Communications standard ("GSM") and second generation Code Division Multiple Access standard ("2G-CDMA"). Id. AT&T and T-Mobile chose to operate GSM networks. Id. By contrast, Verizon and Sprint operate 2G-CDMA networks. Id.

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