Chipmaker Qualcomm has agreed to pay a record $975m in fines to end the 14-month anti-trust probe by the Chinese National Development and Reform Commission (NDRC) into its patent licensing practices.
Qualcomm said in a statement: "Qualcomm has agreed to implement a rectification plan that modifies certain of its business practices in China and that fully satisfies the requirements of the NDRC’s order."
"Although Qualcomm is disappointed with the results of the investigation, it is pleased that the NDRC has reviewed and approved the Company’s rectification plan."
The chipmaker has also agreed to charge royalties based on 65% of the selling price of smartphones in China, rather than based on the entire price.
As part of what is claimed to be the largest settlement in China’s corporate history, Qualcomm also needs to reduce royalty rates on patents used in China’s mobile phone market, which could help Chinese smartphone makers Xiaomi and Huawei.
Licenses to its existing 3G and 4G Chinese patents will be offered separately from licenses to its other patents and would even offer patent lists during the negotiation process.
Qualcomm president Derek Aberle said: "We are pleased that the investigation has concluded and believe that our licensing business is now well positioned to fully participate in China’s rapidly accelerating adoption of our 3G/4G technology."
Qualcomm CEO Steve Mollenkopf said: "We are pleased that the resolution has removed the uncertainty surrounding our business in China, and we will now focus our full attention and resources on supporting our customers and partners in China and pursuing the many opportunities ahead."
