Qualcomm and Lenovo sign patent deal in China
Chip maker Qualcomm has agreed a licensing deal with technology company Lenovo in China.
The deal relates to 3G and 4G patents and covers mobile phone devices sold by both Lenovo and Motorola, which Lenovo bought for $2.91 billion in 2014.
Under the agreement, Qualcomm has granted Lenovo a royalty-bearing patent licence to develop, manufacture and sell 3G and 4G devices.
Although the deal’s figures have been kept confidential, Qualcomm said they were consistent with a plan it 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: “We look forward to expanding our collaboration with Lenovo as the company continues to bring exciting new Lenovo and Motorola devices to consumers around the world.”
Scott Offer, general counsel of Lenovo, added: “As a leading global provider of mobile devices, Lenovo is pleased to have concluded another licensing agreement with Qualcomm, which improves our IP position in China.”
