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

Author: Bharat Book Bureau

Author: Bharat Book Bureau

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

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. ( http://www.bharatbook.com/detail.asp?id=129718&rt=Qualcomm-MediaTek-3G-Patent-Agreement-and-Its-Impact-on-the-Mobile-Phone-Industry.html )

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.

Key chapters :

1. Background

2. Strategic Implications

2.1 Qualcomm

2.1.1 Entering the Chinese Market via Collaboration with MediaTek

2.1.2 Seeking Collaboration on TD-SCDMA Technology Development

2.2 MediaTek

2.2.1 Avoiding Legal Issues on 3G Patents

2.2.2 Adjusting Customer Portfolio in Light of Popularization of 3G Mobile Communications

3. Projected Impact

3.1 Effects on Qualcomm and MediaTek

3.1.1 Distinct Market Differentiation Expected to Expand the Overall 3G Market

3.1.2 Qualcomm's Access to Information on MediaTek's Customers Expected to Become a Problem

3.1.3 Creating a New 3G Business Model for MediaTek

3.2 Impact on Other Mobile Phone IC Suppliers

3.3 Impact on Mobile Phone Manufacturers

Appendix

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