For the second year there is conflict between Qualcomm and Chinese competent authorities, which greatly complicates the conduct of business of the American company in this promising and big market. Qualcomm is not satisfied with the fact that some local manufacturers hide the true production volume to pay less fees. The Chinese authorities, in turn, forced to change the methodology for calculating Qualcomm license fee and stop the practice of selling licenses whole "package" which involves the imposition of additional load.
According to the resource Bloomberg, the main intrigue now revolves around the search for a solution that would suit both Chinese and Qualcomm. First require to calculate the royalty is not just the cost of the device containing products and the development of Qualcomm, and only the cost of specific components. Since such a scheme would force Qualcomm to reduce the average size of the royalties about ten times, it bothers precedent, because such preferences will require other countries. In this case, Qualcomm more likely will pay a heavy fine and agree to revise the pricing.
As a "Plan B" company is considering licensing model, implying a cover of "tribute" even those producers who do not use products from Qualcomm. Impressive patent portfolio leaves little in the modern smartphone components that would not use the intellectual property of the company. The Chinese authorities also insist that Qualcomm should be forbidden to sell licenses whole package, in which the buyer can not pay for much-needed technology.