Qualcomm agrees 3G and 4G licensing deal

Chip maker Qualcomm has agreed a licensing deal with Zhuhai Ewpe Information Technology in China related to 3G and 4G patents.

Under the terms of the agreement, Qualcomm has granted Zhuhai a royalty-bearing licence to develop, manufacture and sell subscriber units covering 3G WCDMA and CDMA2000, and 4G LTE for use in China.

The royalty rate has been kept confidential but is consistent with the plan Qualcomm submitted to China’s National Development and Reform Commission (NDRC) last year.

In February last year, the NDRC concluded a 14-month investigation into Qualcomm’s licensing of chips after a competition probe.

Qualcomm agreed to offer separate licences to certain patents, with licensees whose phones use 4G technology paying a 3.5% royalty rate and those whose handsets incorporate 3G paying 5%.

Derek Aberle, president of Qualcomm, said: “Qualcomm is pleased to help drive value for original equipment manufacturers through the licensing of our advanced technologies.”

Dong Mingzhu, chair of Zhuhai, said: “We look forward to bringing new choices in 3G/4G devices for Chinese consumers. This licence will support us in bringing new and exciting devices that have the power, functionality and connectivity in demand today.”