TAIPEI (Dow Jones) — Chip designer MediaTek Inc. (2454.TW) and U.S.-based Qualcomm Inc. (QCOM) said Friday they had agreed on a patent arrangement covering chips used in Wideband Code Division Multiple Access and Code Division Multiple Access networks.
Because the agreement is only between the two companies, MediaTek‘s customers would need to obtain a separate license from Qualcomm to receive rights to any of Qualcomm‘s patents, and Qualcomm‘s customers would need to obtain a separate license from MediaTek to receive rights to any of MediaTek‘s patents, said an official at MediaTek who declined to be named.
The agreement will allow MediaTek to sell handset chips for the W-CDMA standard, a mainstream third-generation technology, said Jessica Chang, an analyst at Credit Suisse.
– By Jessie Ho, Dow Jones Newswires; 88622 502-2557; firstname.lastname@example.org
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