Samsung, Qualcomm revises cross-licensing deal

By Lee Youkyung
SEOUL, Nov. 5 (Yonhap) -- Samsung Electronics Co., the world's second-largest
mobile handset maker, said Thursday it has signed a revised patent deal with
Qualcomm Inc., the world's largest provider of wireless chipset technology, to
exchange rights to use each other's wireless technologies.
Samsung will pay US$1.3 billion in advance to Qualcomm for using the U.S.
chipmaker's licenses in wireless technology including code division multiple
access (CDMA) for the next 15 years, the Korean company said in a regulatory
filing.
Samsung will also grant Qualcomm the right to use Samsung's 57 patent licenses in
mobile technology, it said. But it declined to provide the number of the licenses
transferred from Qualcomm to Samsung.
Samsung said it will not be paid by Qualcomm because of the higher value of
Qualcomm's licenses.
The technology in the cross-licensing deal includes fourth-generation wireless
technology used in handset devices and base stations, Samsung said.
Qualcomm owns key patents for CDMA, the most widely used wireless network
standard in the world.
South Korea is one of major markets for Qualcomm as it is a home to the world's
No. 2 and No. 3 handset makers, Samsung Electronics and LG Electronics Inc.
"The new deal is a better one for Samsung," a Samsung spokesman said.
In July, South Korea's antitrust watchdog slapped Qualcomm with US$208 million in
fines for violating the nation's fair competition rules by abusing its monopoly
over the mobile handset chip market.
ylee@yna.co.kr
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