In a draft report, the Japan Fair Trade Commission orders Qualcomm to eliminate that provision from its contracts. It also orders Qualcomm to strike a provision in which the licensees agree not to assert their related patents against each other.

The dispute in Japan joins others in Europe and Korea challenging Qualcomm's business practices.

If it were to eliminate the provisions per the draft order, Qualcomm could face attempts by the Japanese licensees to assert their patents against the chip maker, the company said.

Qualcomm also disputes claims in the order that it forced the Japanese companies to agree to the provisions. Those companies voluntarily agreed to the license terms, it said. "Indeed, the non-assert provision was rejected by several Japanese companies, and is not even a provision in those agreements," Qualcomm said in a statement.

The chip maker plans to submit its opposition to the draft order within two weeks. After that, the competition authority can issue a formal order with or without modifications, Qualcomm said. The agency could also decline to issue any formal order.