Qualcomm Inc. announced on Aug. 7 that it signed a patent license agreement with Vivo Communication Technology Co. Ltd. of China. The news came one week after Qualcomm (Nasdaq: QCOM) announced a pact with a second Chinese company, GuangDong OPPO Mobile Telecommunications Corp. Ltd.
Though the names are unfamiliar to many Americans, Qualcomm said both companies are leading mobile device suppliers in China. Vivo is the No. 3 phone maker in the populous country, Bloomberg reported, adding that Vivo and OPPO combined account for 30 percent of phones shipped by the top 10 Chinese phone makers.
The San Diego business is working to sign new licensing agreements with Chinese companies that use its patented wireless communications technology. Terms of the new deals were laid out in a February 2015 agreement between Qualcomm and Chinese government authorities.
It took more than a year for Qualcomm to reach the agreement with China’s antitrust regulator, the National Development and Reform Commission. After reaching the agreement, Qualcomm’s legal team fanned out to sign new license agreements. The process has been slow, and that has affected Qualcomm’s revenue stream. Some Chinese licensees have not yet reached updated agreements with Qualcomm. Some have gone as far as to withhold license payments.
By now, Qualcomm has inked new agreements with more than 100 Chinese licensees.