Skip to main content

Qualcomm Signs New Patent Licensing Deals In China


Qualcomm announced today that it has inked new patent licensing deals in China with smartphone manufacturers Beijing Tianyu Communication Equipment and Haier Group. The San Diego-based chipmaker has made a series of similar agreements over the past two months as it recovers from an antitrust investigation by the Chinese government.
Since the beginning of November, Qualcomm has also announced deals with QiKu, a joint venture between Qihoo 360 and Coolpad, Xiaomi, Huawei, TCL Communication Technology Holdings, and ZTE.
Financial terms for its latest deals were undisclosed, but Qualcomm stated that its licensing agreements with Tianyu and Haier adhere to the terms of a rectification plan it submitted to China’s National Reform and Development Commission earlier this year after the government found that it had violated national antimonopoly laws.
Qualcomm said at the time that it disagreed with the results of the investigation, but agreed to pay a $975 million penalty.The fine seems huge until compared to the $7.57 billion in royalties from patent agreements Qualcomm made in China last year. More importantly, the settlement allows Qualcomm to continue selling chips to electronic companies.
The investigation hurt Qualcomm’s fourth-quarter earnings because many of its licensees in China wanted to wait for a settlement before negotiating their contracts, but the company said 2015 was a “transition” year and it is optimistic about its recovery next year. Chief executive officer Steve Mollenkopf said earlier this month that Qualcomm is currently in talks with all of China’s major handset makers and plans to announce deals soon.
One of the main concessions Qualcomm made as part of the settlement is that it will calculate royalties based on 65 percent of the net selling price of devices, instead of its wholesale price. According to the Wall Street Journal, Qualcomm has agreed to charge licensees 3.5 percent for devices that uses only its patented 4G technology, and 5 percent for ones that use 3G only or a mix of both 3G and 4G.

Comments

Popular posts from this blog

SoftBank Lands $236M From Alibaba And Foxconn To Bring Its Pepper Robot To The World

Remember Pepper,  the intelligent robot that SoftBank unveiled last year ? Pepper goes on sale in Japan this coming weekend, but in advance of that launch  SoftBank has revealed  that Alibaba and manufacturer Foxconn have invested $118 million each in its robotics division. That deal will give Alibaba and Foxconn 20 percent shares in SoftBank Robotics Holdings (known as SBRH), with SoftBank retaining a dominant 60 percent stake. “SoftBank, Alibaba and Foxconn will build a structure to bring Pepper and other robotics businesses to global markets, and cooperate with the aim of spreading and developing the robotics industry on a worldwide scale,” SoftBank said in its announcement. SoftBank isn’t short on money, of course — it is building up quite a portfolio of e-commerce investments across Asia — but its two partners bring know-how, strategy and global networks to the table. So, it looks like Pepper has eventual world domination plans. Or, at least, ...

How ad-free subscriptions could solve Facebook

At the core of Facebook’s “well-being” problem is that its business is directly coupled with total time spent on its apps. The more hours you pass on the social network, the more ads you see and click, the more money it earns. That puts its plan to make using Facebook healthier at odds with its finances, restricting how far it’s willing to go to protect us from the harms of over use. The advertising-supported model comes with some big benefits, though. Facebook CEO Mark Zuckerberg has repeatedly said that “We will always keep Facebook a free service for everyone.” Ads lets Facebook remain free for those who don’t want to pay, and more importantly, for those around the world who couldn’t afford to. Ads pay for Facebook to keep the lights on, research and develop new technologies, and profit handsomely in a way that attracts top talent and further investment. More affluent users with more buying power in markets like the US, UK, and Canada command higher ad prices, effectively...

Apple Releases First Battery Case To Eat Third-Party Accessory Makers’ Lunch

In a surprise move, Apple just announced an external battery case for the iPhone 6s. Named the  iPhone 6s Smart Battery Case , the battery extends the battery life of your iPhone 6s by up to 25 hours. The new accessory is available in black and white for $99 starting today. Let’s start with the design. Apple is using silicone as the main material like on its other cases. The company doesn’t disclose the capacity of the battery except that you’re supposed to get 18 to 25 hours of extra battery. Like third-party battery cases, Apple uses a Lightning male port at the bottom to plug your iPhone. You can charge the case using a traditional Lightning cable — most third-party batteries rely on a microUSB cable. Apple’s accessory also works with the iPhone 6 and it looks like there isn’t a 6 Plus and 6s Plus version. The Smart Battery Case features an unfortunate hump at the back. Mophie’s  Juice Pack  design is a bit sleeker compared to Apple’s official accessory. Apple...

Facebook will verify the location of U.S. election ad buyers by mailing them postcards

Facebook’s global director of policy programs says it will start sending postcards by snail mail to verify buyers of ads related to United States elections. Katie Harbath, who described the plan at a conference held by the National Association of Secretaries of State this weekend, didn’t reveal when the program will start, but told Reuters that it would be before the Congressional midterm elections in November. The cards will be sent to people who want to purchase ads that mention candidates running for federal offices, but not issue-based political ads, Harbath said, and contain a code that buyers need to enter to verify that they are in the U.S. The program is similar to ones used by Google My Business and Nextdoor when they need to verify business owners or users who want to join closed neighborhood groups, respectively. Harbath told Reuters that the postcards “won’t solve everything,” but were the most effective method the company came up with to prevent people from using fa...