‘Consistent with Qualcomm’s Fair, Reasonable and Non- Discriminatory (FRAND) commitments, European Telecommunications Standards Institute (ETSI) Intellectual Property Right (IPR) policy and industry practice, Qualcomm’s cellular standard essential patent licensing program is based upon licensing mobile handsets that fully conform to the 3GPP Standards.
Under Qualcomm’s licensing program for cellular essential patents, the following royalty terms will apply on a worldwide basis to a license for Original Equipment Manufacturer (OEM) branded mobile handsets that implement the 5G NR standard, up to and including release 15 of the 3GPP specifications:
An effective running royalty rate of 2.275% of the selling price of branded single-mode 5G handsets; and
An effective running royalty rate of 3.25% of the selling price of branded multi-mode (3G/4G/5G) handsets.
In addition, Qualcomm will continue to offer licenses for OEM branded mobile handsets that include both Qualcomm’s cellular standard essential patents as well as those patents not essential to the standard, a total portfolio of over 130,000 patents and pending applications worldwide at royalty rates of 4% of the selling price for branded single-mode handsets and 5% of the selling price for branded multi-mode handsets.’
Qualcomm expects initial 5G handsets to be available in commercial quantities in 2019.