Qualcomm, Xiaomi agree 4G licensing deal

Semiconductor company Qualcomm has agreed a patent licensing deal with Chinese smartphone manufacturer Xiaomi.

The deal covers 3G and 4G technology used in smartphones.

The agreement, announced on Wednesday, December 2, enables Xiaomi to develop and manufacturer smartphones using Qualcomm’s 3G and 4G patented technology in China .

In return, Xiaomi will pay a royalty that is consistent with a rectification plan that Qualcomm recently submitted to China’s National Reform and Development Commission.

Qualcomm submitted the plan earlier this year following the commission’s ruling that it had violated China’s Anti-Monopoly Law. The plan was accepted by the commission.

“Xiaomi prides itself on embracing and leading smartphone innovation through its popular line of Mi devices,” said Lei Jun, chief executive of Xiaomi.

“A licence from Qualcomm will play an important role in helping us bring the newest and most innovative products to our growing customer base,” he added.

Derek Aberle, president of Qualcomm, said: “Qualcomm is committed to the success of its partners in China as they continue to grow their businesses and we are pleased to reach this new agreement with Xiaomi.

“We work closely with our partners, such as Xiaomi, to push the boundaries of what’s possible and drive the advancement of the mobile industry,” he added.