Monday, February 05, 2018 12:43:33 PM
Samsung inked a licensing agreement covering both 3G and 4G with Qualcomm back in 2009 for use of the latter’s CDMA2000, WCDMA, TD-SCDMA and OFDMA patents. The company would pay $1.3 billion for use of Qualcomm’s patents. The $1.3 billion upfront payment granted Samsung a license to use Qualcomm’s patents for 15 years while also paying additional royalties but the royalty rate was not disclosed. Qualcomm’s royalty rate is said to be different for every company and Samsung reportedly pays some of the lowest rates due to massive volumes.
Qualcomm and Samsung today announced an expansion of the 2009 global patent cross-license agreement covering mobile devices and infrastructure equipment. Qualcomm is yet to provide specifics of the new deal but the head of its licensing division Alex Rogers said during the earnings call today that Samsung will continue to pay royalties on handset sales, instead of combining the royalty agreement with its chip purchases.
Samsung agrees to drop regulatory action
Qualcomm was hit with a $825 million fine by the South Korean Fair Trade Commission in December last year after a three-year investigation. The KFTC accused Qualcomm of having an “unfair business model” and creating a monopoly. The company was also ordered to negotiate with rival chipmakers on patent licensing in good faith and to renegotiate its chip supply agreements with handset makers if requested.
Samsung was one of the few companies enlisted for reference by the KFTC during its investigation and the company also filed its interventions in Qualcomm’s appeal of the regulator’s decision. Samsung will now be withdrawing its interventions in Qualcomm’s appeal of the KFTC decision in the Seoul High Court as part of this new agreement.
This deal comes at a crucial time for Qualcomm as it looks to solve its legal matters while trying to fend off a hostile takeover bid from Broadcom. It will hope that this deal with Samsung sends a signal to investors that it’s capable of mending its relationships with customers without Broadcom’s help.
“We believe this amended agreement provides the foundation for a long-term, stable relationship with Samsung following the KFTC investigation,” said Rogers.
Qualcomm and Samsung have also inked a multi-year strategic relationship agreement to enhance cooperation in various technology areas and across a range of mobile devices. This agreement extends the companies’ relationship through the transition to 5G.
https://www.sammobile.com/news/qualcomm-and-samsung-amend-cross-license-agreement-team-up-for-5g/
"Intellectuals solve problems; geniuses prevent them." - Albert Einstein
Recent IDCC News
- InterDigital Announces Convertibility of 3.50% Senior Convertible Notes Due 2027 • GlobeNewswire Inc. • 07/03/2024 08:00:00 AM
- InterDigital signs license agreement with Google • GlobeNewswire Inc. • 07/02/2024 08:00:00 AM
- Form 11-K - Annual report of employee stock purchase, savings and similar plans • Edgar (US Regulatory) • 06/20/2024 12:30:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:29 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 09:26:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 08:51:28 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 08:42:45 PM
- InterDigital and Philips to Showcase Volumetric Streaming Technologies Empowering Immersive Sports Experiences at AWE USA 2024 • GlobeNewswire Inc. • 06/11/2024 08:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/10/2024 08:30:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:09:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:06:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:04:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:01:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:13:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:10:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:07:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:06:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:05:55 PM
- InterDigital Declares Regular Quarterly Cash Dividend • GlobeNewswire Inc. • 06/06/2024 08:30:00 PM
- InterDigital to Present at Upcoming Conferences • GlobeNewswire Inc. • 05/30/2024 12:30:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/06/2024 08:06:54 PM
- InterDigital Announces Financial Results for First Quarter 2024 • GlobeNewswire Inc. • 05/02/2024 12:30:08 PM
- InterDigital awarded injunction against Lenovo • GlobeNewswire Inc. • 05/02/2024 12:30:00 PM
Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • FHLD • Jul 3, 2024 9:00 AM
EWRC's 21 Moves Gaming Studios Moves to SONY Pictures Studios and Green Lights Development of a Third Upcoming Game • EWRC • Jul 2, 2024 8:00 AM
BNCM and DELEX Healthcare Group Announce Strategic Merger to Drive Expansion and Growth • BNCM • Jul 2, 2024 7:19 AM
NUBURU Announces Upcoming TV Interview Featuring CEO Brian Knaley on Fox Business, Bloomberg TV, and Newsmax TV as Sponsored Programming • BURU • Jul 1, 2024 1:57 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM