Qualcomm royalties lower for China

Home > Business > Industry

print dictionary print

Qualcomm royalties lower for China

Qualcomm, a wireless telecommunications company based in the United States, charges Chinese mobile handset makers lower royalties than what it charges Korean companies, according to sources yesterday. Qualcomm has the source technology for the code division multiple access (CDMA) standard, which was adopted by Korean cellular phone service providers. Korean companies commercialized the technology for the first time in the world, and have paid more than 2 trillion won ($1.7 billion) in royalties to Qualcomm so far. According to a 2001 contract between Qualcomm and a Chinese company, the Chinese company must pay 2.65 percent of the mobile handsets’ sale prices in the domestic market as royalties. Korean companies pay 5.25 percent, the JoongAng Ilbo found. Chinese companies have to pay 7 percent in royalties for mobile phone exports, which is currently higher than the 5.75 percent that Korean companies pay. But after three years, the rate must be cut to 5 percent if China’s exports exceed 100,000 handsets per quarter. Qualcomm has promised that it would treat Korea as the most favored country. This is the first time that evidence has appeared to the contrary. by Chung Sun-gu

More in Industry

Gaming companies have great quarter during pandemic

Starbucks Korea reports strong second-quarter earnings

Kepco shifts to a profit in 2nd quarter

Virtual Dokdo

Refresh Day Eve

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now