Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Qualcomm faces hurdles collecting royalties from China

China has opened an anti-monopoly investigation against Qualcomm

Article comments

China's anti-monopoly investigation of Qualcomm is starting to disrupt its licensing business and making it harder for the U.S. company to collect royalties from the country.

The government probe is creating "significant challenges" for Qualcomm, the company reported on Wednesday in an earnings presentation.

China's National Development and Reform Commission (NDRC) began examining Qualcomm's business in November, following complaints that the company had been overcharging local clients.

Qualcomm makes mobile processors found in many smartphones, but the company also has a large business licensing its patents. On Wednesday, however, Qualcomm said that certain Chinese clients were not complying with their contracts and underreporting their device sales. Another client is in a licensing dispute with the U.S. company.

In addition, some local manufacturers are delaying business with Qualcomm, while the Chinese government continues its anti-monopoly probe, the company added.

Earlier this month, the NDRC said it is investigating the way Qualcomm licenses its technology, including charging fees on expired patents, bundling its patent licensing with chip sales, and refusing to license patents to certain chip manufacturers.

It's unclear when the NDRC will complete its investigation, but it could result in a major fine for Qualcomm.

Qualcomm projects 3G and 4G device shipments will reach 1.3 billion globally this year. But it expects manufacturers will only report between 1.04 to 1.13 billion of those shipments to the company, due to underreporting and disputes with licensees.

On Thursday at a Qualcomm event in Beijing, the company said that it had over 120 Chinese vendors using its 3G CDMA patents, and another 70 vendors for its 4G LTE patents.



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *