Qualcomm and Huawei are trying to get into a settlement on a dispute concerning royalty payments. You see, the Chinese OEM is said to be withholding payments from the chip manufacturer but the issue may be over soon. The two consider each other as partners. Huawei is a customer while Qualcomm is a partner. The latter didn’t give any comment when pressed on the matter that is actually similar to what happened with Apple before.
Huawei is the second licensee to hold up the royalties but Qualcomm wants to make things right not by making a settlement. This move comes after Qualcomm declines Broadcom’s multi-billion dollar deal.
We’re not exactly sure what will happen in the coming months but Qualcomm is expecting billions of dollars in royalty revenue can be restored or collected from different handset manufacturers. Qualcomm makes a lot of money by selling chips, as well as, royalties for its patents. Such technologies are mainly used for smartphones and other devices that use cellular standards.
No doubt Qualcomm collects billions but the company is being forced by regulators to make changes in its ways. Some people are saying Qualcomm is asking licensees for very expensive patent royalties–bordering on being unfair. We’re hoping something positive will be the outcome.
VIA: WSJ
