Qualcomm Incorporated announced today that it has joined hands with LG Electronics (LGE) in a worldwide patent license agreement. According to the terms of the agreement, Qualcomm has given LGE a patent license to manufacture and sell single-mode and multimode 3G, 4G, and 5G devices. The Senior Vice President and General Manager of Qualcomm Technology Licensing remarked:
This agreement builds on our long-standing technology relationship and reaffirms the value of Qualcomm’s world-class patent portfolio. Qualcomm is the developer and enabler of foundational technologies for the wireless industry and is the leader in the transition to 5G. We are proud to make our breakthrough technologies available to leading OEMs like LGE and to support them in delivering compelling products around the world.
The deal comes hot on the heels after LGE claimed that it was unable to bridge some differences between Qualcomm and itself and renew its chip license agreement back in June. Furthermore, in April, Qualcomm Incorporated also reached a surprise agreement with Apple allowing the latter to use its modern chips in the iPhones. However, Qualcomm's shares took a hit when Apple announced the acquisition of Intel's cellular modem business for a billion dollars in July.
Qualcomm has devoted substantial research and developmental resources for laying the foundations of the 5G New Radio (NR) standard and is considered one of the pioneers of the technology. It considers 5G as a game-changer in the world of cellular technologies producing up to $12 billion worth of goods while inter-connecting smart cars, smart homes and a plethora of devices under the belt of the internet of things.