QUALCOMM, Inc. (NASDAQ:QCOM) has expanded its use of the lower-cost licensing model in the new mobile data networks. This move could significantly help in facilitating talks with two of its leading customers including Apple Inc. (NASDAQ:AAPL). This was said by the company’s executive in charge of patent licensing.
Over the years Qualcomm has earned much of its profits from its patent business. However, it is the same patent business that has led to a lot of conflict with Apple, Huawei Technologies and Samsung Electronics. The company has also found itself at the middle of conflict with regulators in the United States, South Korea and China.
The new deals that the company is signing can help reduce the rate of licensing that Qualcomm gets while at the same time making its business more strong and reliable if regulators find the terms more favorable and two of its major customers-Apple and another, which is highly believed to be Huawei, settle their disputes and start paying Qualcomm.
Qualcomm’s head of license division Alex Rogers said that it is for the good of the company to deal with two licensee issues. He named Apple as one of the company they are dealing with but did not disclose the second one. Rogers did not however directly comment on the possibilities of resolving either of the customer disputes. Apple and Huawei are yet to give comments on the matter.
In addition to selling mobile phone chips, Qualcomm also runs an old business licensing business for wireless networks. The licensing business as led to a lot of controversies globally and caused the company to pay billions of dollars in fines imposed by regulators. The company has appealed many of these fines are a number of them is still waiting determination.
Maker of headsets can secure licenses for one of the company’s patents. A smaller set of the “standard essential patents” for 3.25% or the full suite which costs makers around 5% of the headset cost.
Most of the company’s customers have in past secured licenses for both patents in order to avoid lawsuits. Qualcomm has however been working to reduce tension by facilitating customers to easily license the small cheaper set of standardized patents.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.