Samsung to pay Qualcomm 1.3 bln dlrs in new licensing deal

South Korea's Samsung Electronics said Thursday it will pay 1.3 billion dollars plus royalties to US wireless chip supplier Qualcomm under a new 15-year licensing deal.

Samsung, the world's second largest mobile phone maker, said it would make the advance payment for the use of Qualcomm's licences in wireless technology including code division multiple access (CDMA).

The Korean firm said it would also grant Qualcomm the right to use Samsung's 57 patent licences in mobile technology.

It said the technology in the cross-licensing deal includes fourth-generation wireless technology used in handset devices and base stations.

South Korea is one of Qualcomm's major markets since it is also home to the world's third largest handset maker, LG Electronics.

In July South Korea's antitrust watchdog imposed a 208 million dollar fine on Qualcomm for abusing its monopoly over the mobile handset chip market.

(c) 2009 AFP