In 2009, Samsung and Qualcomm signed a licensing agreement covering 3G and 4G for the use of the CDMA2000, WCDMA, TD-SCDMA and OFDMA patents of the chip manufacturer. This allowed South Korea to use the patents for 15 years. Now companies have announced an expansion of the global contract covering mobile devices and infrastructure equipment.
Details on the new deal were not provided but Qualcomm’s licensing division chief Alex Rogers said Samsung will continue to pay royalties on handset sales.
They have also signed a multi-year strategic relationship agreement to enhance cooperation in various technology areas and on a variety of mobile devices. This agreement broadens the relationship of companies during the transition to 5G.
It is worth remembering that Qualcomm received a $ 825 million fine from the South Korean Fair Trade Commission (KFTC) in December last year after a three-year investigation. KFTC has accused Qualcomm of having an “unfair business model” and creating a monopoly. The company was also “invited” to negotiate with rival chip makers in patent licensing and renegotiate its chip supply contracts with smartphone makers if requested.
Samsung was one of the few companies listed for reference by KFTC during its investigation. Samsung will now withdraw its interventions in the appeal against Qualcomm to the KFTC decision in Seoul High Court as part of this new agreement.
This agreement came at a crucial time for Qualcomm, which seeks to resolve its legal issues and tries to break away from a hostile takeover bid by Broadcom.
