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QUALCOMM, Inc. (NASDAQ:QCOM) Signs Licensing Deals With Chinese Companies

QUALCOMM, Inc. (NASDAQ:QCOM) has signed new patent licensing deals with the Haier Group, a consumer appliances company, and Beijing Tianyu Communication Equipment, a Chinese smartphone manufacturing company. The chip-making firm has a complicated relationship with China. Few months ago, it was summoned for antitrust investigation by the Chinese government and ever since then the mobile chipmaker has been making deals and agreements with other companies in China in a bid to recover from its downfall.

Qualcomm has announced deals with multiple firms in the past few months including Qiku, Xiaomi, TCL Communication Technology Holdings, ZTE, and Qihoo 360. All these companies belong to the technical field and can help Qualcomm improve its share and output in various related departments.

Patent License for 3G and 4G

Qualcomm officials said that the two Chinese companies have signed 4G, and 3G patent license agreements and both of them will receive royalties from the mobile chipmaker for making and selling 3G WCDMA and CDMA2000 AND 4g LTE units for the subscribers in China. Although the financial terms of the deals were kept a secret, Qualcomm said that the agreement license follows all the conditions of the rectification plan submitted to the National Reform and Development Commission of China.

The company had submitted the rectification plan at the start of 2015 after the Chinese government found Qualcomm officials to be violating the country’s national antimonopoly law. According to Qualcomm, although the company was not in agreement with the investigation results, it had paid the penalty of $975 million. However when compared to the $7.77 billion Qualcomm made through the royalties from patent agreements the amount does not seem to be that huge.

The new agreement will allow the company to keep on selling its chips to the electronic companies in China. Qualcomm Technology Licensing business unit’s Senior Vice President and General Manger, Eric Reifschneider said that currently the mobile ecosystem of China is thriving due to which the Chinese companies, consumers, and employees all are being benefitted.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on Wallstreetpr.com as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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