Qualcomm and the Chinese consumer electronics company Meizu
recently announced that they had signed a licensing deal with each
other. With this deal, they ended a yearlong infringement suit
which was filed by Qualcomm against the Chinese company.
In the October of 2016, we came to know that Qualcomm (the
largest chipmaker in the world) has filed patent infringement suits
against the Chinese smartphone maker Meizu in the US International
Trade Commission, the Mannheim regional Court in Germany and in
France. The two went under a tiff when Qualcomm claimed that Meizu
is refusing to negotiate the patent licensing deals for the
chipmaker's 3G and LTE technologies.
Qualcomm's technology licensing (QTL) business owns a
massive portfolio of wireless technologies and generates a
lion's share of its operating profits also. This portfolio
allows it to generate a 3-5% profit over the wholesale price of
every smartphone which is sold worldwide. This deal was widely
accepted
