Lenovo, Qualcomm Reach 3G/4G China Patent License Agreement

View: 2120     Date: 2016-02-24 09:47

On February 18, 2015, Lenovo Group Ltd. and Qualcomm Incorporated announced that a 3G/4G China patent license agreement had been reached between them, which covered the sales terminal of Motorola and Lenovo. According to this agreement, Lenovo will have to pay Qualcomm a royalty fee for selling those end products featuring 3G/4G cellular technology in China.

Under the terms of this agreement, Lenovo was granted with a royalty-required patent license to develop, manufacture and sell 3G (WCDMA and CDMA2000) and 4G (including 3-mode (LTE-TDD, TD-SCDMA and GSM)) complete device. The royalty payable by Lenovo is consistent with the rectification plan submitted to the National Development and Reform Commission of P.R.C. by Qualcomm. Previously, Qualcomm has signed similar patent license agreements respectively with Xiaomi Inc., Huawei Technologies Co. Ltd., TCL Corporation, ZTE Corporation and QiKU Internet Network Scientific (Shenzhen) Co., Ltd..

 “As a leading global provider of mobile devices, Lenovo is pleased to have concluded another license agreement with Qualcomm, which improves our IP position in China,” said Scott Offer, general counsel of Lenovo. “This agreement also provides a solid foundation for Qualcomm and Lenovo to expand and strengthen the long-term relationship between our companies, both in China and around the world.”

 “Qualcomm is pleased to sign a new license agreement with Lenovo which builds on our long standing relationship,” said Derek Aberle, president of Qualcomm Incorporated. “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.”

Qualcomm is the world’s largest manufacturer of smart mobile phone processors and modem chips. Public data show that Qualcomm earned half of its profits from the cellular technology patent license. After China’s anti-trust investigation in 2015, Qualcomm agreed to pay a fine of US$975 million and modify the relevant terms of its patent license agreement.

Source from: Xinhuanet News