Qualcomm, MediaTek ink patent cross-licensing deal

SAN FRANCISCO—Fabless chip vendors Qualcomm Inc. and MediaTek Inc. have agreed to let each other utilize technology covered by their respective patent portfolios, the companies said Thursday (Nov. 19).

Under the terms of the arrangement, Qualcomm (San Diego) and MediaTek (Hsinchu, Taiwan) have agreed, subject to certain conditions, not to assert certain patents against each other with respect to some of their respective chips, the companies said.

The deal includes essential CDMA and WCDMA patents held by Qualcomm, the companies said.

MediaTek's customers do not receive rights to any of Qualcomm's patents and Qualcomm's customers do not receive rights to any of MediaTek's patents, even if such customers' products incorporate chips purchased from Qualcomm or MediaTek, the companies said.

Other terms of the agreements remain confidential, the companies said.

Qualcomm has extensive patents around CDMA and WCDMA which generate billions of dollars in revenue for the company each year. For its most recently concluded quarter, Qualcomm reported licensing revenue of $837 million.