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Qualcomm-MediaTek 3G Patent Agreement and Its Impact on the Mobile Phone Industry

Market Intelligence & Consulting Institute (MIC) [a division of Institute for Information Industry (III)], Dec 2009, Pages: 12


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MediaTek and Qualcomm signed a 3G WCDMA IC patent agreement on November 20, 2009, whereby MediaTek will no longer have to pay Qualcomm license or royalty fees for using Qualcomm patents in MediaTek's 3G chipsets. MediaTek's customers, however, do not therefore receive rights to Qualcomm's patents and are required to obtain a separate license from Qualcomm instead. The new model not only changes Qualcomm's patent licensing model but poses a significant challenge to MediaTek's successful 2G business model. The agreement is expected to enable the two companies to complement each other in customer portfolio and market deployment. Other 3G IC solution suppliers, meanwhile, are expected to enter keen competition. This research seeks to analyze the effects of MediaTek and Qualcomm's IC patent agreement on the overall mobile phone industry.

List of Topics

- Background of the Qualcomm-MediaTek 3G patent agreement

- Strategic implications of the agreement for Qualcomm and MediaTek

- Projected effects and impact of the agreement on Qualcomm and MediaTek, other mobile phone IC suppliers, and mobile phone manufacturers

- Future 3G development of Qualcomm, MediaTek, and Chinese black-market mobile phone manufacturers



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