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Qualcomm Deal Sparks China Smartphone Patent Skirmishes


Ron Burgundy
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A Qualcomm sign is pictured in front of one of its many buildings in San Diego, CaliforniaBy Gerry Shih BEIJING (Reuters) - Last summer, lawyers from Chinese telecoms gear maker ZTE Corp began writing to half a dozen local handset makers it believed used its patents. ZTE's efforts to collect patent royalties - months ahead of Qualcomm Inc's China antitrust settlement this week, according to people with knowledge of the matter - shows how that deal has already changed the way China's booming smartphone industry does business. As anticipated by ZTE, a key term in the settlement dissolved Qualcomm's cross-licensing agreements in China that had given smaller Qualcomm customers free access to the patent portfolios of more established Qualcomm customers. The settlement has allowed wireless patent holders like ZTE and Huawei Technologies to seek royalties, while introducing a new risk of litigation to China's younger handset industry at a time when domestic patent law is gaining traction.




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