Qualcomm to Gain Fees From Meizu in Lawsuit Settlement

Qualcomm to Gain Fees From Meizu in Lawsuit Settlement

Qualcomm said Meizu has agreed to pay licensing fees to settle legal battles in China and three other countries, demonstrating the U.S. company can defend its intellectual property in the world’s biggest smartphone market, according to Bloomberg. Meizu will pay Qualcomm patent fees similar to those accepted by other Chinese phone makers, the two companies said in a statement.

In a test of its ability to appeal to Chinese courts, Qualcomm sued Meizu in June in China and other countries where Meizu was attempting to do business. The deal also ends those patent conflicts in Germany, France and the U.S., the companies said. The legal dispute, ended by this agreement, was the first time that Qualcomm had asked Chinese authorities to enforce the terms of a settlement that resolved an antitrust investigation and let the San Diego-based company charge for its intellectual property. The U.S. company gets the majority of its profit from technology licensing.

In February 2015, Qualcomm announced it had paid $975 million to settle a case brought by China’s National Development and Reform Commission accusing the company of abusing its dominant position in the chip market for mobile phones. The agreement also set the terms for licensing fees that many Chinese companies hadn’t been paying at that time. The deal with the government let Qualcomm, after what it described often as “tough” negotiations, sign licensing agreements with most of China’s major phone makers.

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