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Qualcomm stock rises after signing new contract

Source: Grill IP patents news

Qualcomm_Yulong

The American corporation decided to sign a licensing agreement with Yulong, a Chinese smartphone manufacturer. Why is it surprising and why is it worth to look closer at? The thing is, the US chip maker since its foundation has been very concern about its reputation, which in any case can not be said about the newly minted Chinese licensee. If you were interested in the young but rapidly growing company from China, you remember the first Chinese smatphones on the Android platform that took over the world. In the early 2000s, the market got more than 50 million smartphones at the price of about 50 US dollars. No one could afford that, and here it was! There were rumors that China Wireless Technologies Limited (a parent company of Coolpad which later gave birth to Yulong), used slave labor of prisoners and super-cheap labor. The China conpany could obtain profits with the absolutely dumping price for their products due to halfpenny wages and inhuman working conditions. Later, the company did not shun to manufacture counterfeit copies of Western models and got with them to the domestic market and other Asian markets, easily crushing Western competitors. For this company patent protection was mere words, and human rights too.

But nowadays things have changed and the American elephant, Qualcomm, is pleased to sign a license agreement and provide its patent portfolio to its shifty partners. What happened? One interesting detail attracts the attention to the contract, namely that the agreement was signed in the framework that was established by the National Development and Reform Commission of China, and, in fact, US side insisted on this way of dealing with these things . Actually it seems strange to an outside observer, but well-informed people understand that the government regulation in China can guarantee full compliance with the terms of such contracts. In fact, Qualcomm signed an agreement with China itself, and Yulong, who in 2013 was only in its infancy, is now a money springboard and NDR Commission of China will provide comfortable landing.

The fact that the most advanced innovations of the American giant – namely patents on 3G WCDMA and CDMA2000 (including EV-DO) and 4G LTE (including tri-mode GSM, TD-SCDMA and LTE-TDD) are handed to the former counterfeiter does not bother investors and depositors of the Californian chip maker.

Thus the Chinese dragon (“Yulong” means “dragon” in Chinese), who had not finished the metamorphosis from a tiny fly, was able to raise shares of the US elephant up to 51.5 US dollars. The increase is only 1% of the total cost – but it does not matter. What matters is the fact that in recent years Qualcomm’s stocks has gotten down and now they are getting up, which some experts call even a “take off”. Well, enjoy your flight, Qualcomm!


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Author: grill-ip

Grill IP is a non-profit project for educational and entertaining purposes only. Our aim is to provide quick and easy access to aggregated and original patent news, IP analysis, interesting business cases in IP, basic legal updates and a list of patent transactions.

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