China’s 2015 antitrust resolution set lower royalty rates for certain Qualcomm patent licenses covering branded devices sold for use in China: 5% for specified 3G devices and 3.5% for specified 4G devices, each calculated on 65% of the device’s net selling price. The National Development and Reform Commission (NDRC) also fined Qualcomm RMB 6.088 billion. These are terms from a 2015 case, not a newly announced 2026 royalty deal.
What royalty cuts did China secure from Qualcomm?
The rates came from Qualcomm’s February 9, 2015 announcement resolving the NDRC’s investigation under China’s Anti-Monopoly Law. The NDRC said on February 10 that its investigation found Qualcomm had abused a dominant position in relevant markets. Its stated concerns included patent-license fees it considered unfairly high and conditions connected to baseband-chip sales. The commission said Qualcomm’s proposed corrective package met its requirements. NDRC statement, February 10, 2015; Qualcomm announcement, filed with the SEC.
Qualcomm described the outcome as an administrative sanction decision finding a violation and said it would not pursue further legal proceedings contesting the NDRC’s findings. That is Qualcomm’s account of its position; the finding and description of the investigation above are the regulator’s. Qualcomm’s February 2015 announcement.
Which devices and patent licenses did the rates cover?
Qualcomm’s announcement described the rates as applying to licenses for its 3G and 4G essential Chinese patents covering branded devices sold for use in China. The two rate categories were not interchangeable:
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| Device category | Announced rate | Royalty calculation base |
|---|---|---|
| 3G devices, including multimode 3G/4G devices | 5% | 65% of the device’s net selling price |
| 4G devices that did not implement CDMA or WCDMA, including three-mode LTE-TDD devices | 3.5% | 65% of the device’s net selling price |
Qualcomm said existing licensees could elect the new terms for covered China sales beginning January 1, 2015. The scope matters: the announcement does not set a universal rate for every Qualcomm patent, all devices, or sales in every country. Qualcomm announcement, February 2015.
What else did the corrective package require?
The NDRC’s account of the corrective measures went beyond the royalty calculation. It said Qualcomm would:
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- Use a 65% base for the specified China handset licensing.
- Provide patent lists and stop collecting royalties on expired patents.
- Stop requiring Chinese licensees to grant back licenses for free.
- Avoid unjustified bundling of non-wireless-essential patents with licenses for wireless standard-essential patents.
- Stop conditioning baseband-chip sales on license terms the NDRC considered unreasonable or on a licensee refraining from challenging those terms.
Qualcomm qualified the chip-sales commitment: it said the resolution did not require it to sell chips to entities that were not Qualcomm licensees, or where a chip customer refused to report licensed-device sales as required by its license. NDRC statement; Qualcomm announcement.
How large was the fine?
The NDRC imposed a fine of RMB 6.088 billion and said it equaled 8% of Qualcomm’s 2013 sales in China. Qualcomm reported the same yuan amount in its announcement. It also gave an approximate US$975 million conversion at then-current exchange rates; that historical conversion is not a current-dollar value. NDRC statement, February 10, 2015; Qualcomm announcement, February 2015.
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The fine and announced rates alone do not establish how much any individual licensee saved or the settlement’s overall effect on Qualcomm’s revenue. The cited documents do not provide a license-by-license account of realized savings.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Did Qualcomm announce a new China royalty cut in 2026?
No new cut is established by the cited company filings. Qualcomm’s fiscal 2025 quarterly filing said that during its second fiscal quarter it signed final agreements for new long-term licenses with two key Chinese OEMs whose initial terms had expired, and comprehensive 4G/5G license agreements with Transsion. The filing describes later licensing activity but does not say those agreements changed the 2015 rate schedule. Qualcomm fiscal 2025 quarterly filing.
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In a filing for the quarter ended June 28, 2026, Qualcomm identified dependence on Chinese OEMs, potential adoption of in-house or competing chips, and U.S.–China trade and national-security tensions as business risks. Those are company risk disclosures, not evidence of a new royalty agreement. Qualcomm filing for the quarter ended June 28, 2026.
A separate report in October 2025 relayed a SAMR official’s account of an inquiry related to Qualcomm’s acquisition of Autotalks and review requirements. That acquisition-review matter is distinct from the NDRC’s 2015 patent-licensing investigation; the reported facts do not establish that it changed the handset royalty terms. Government information-office report, October 2025.
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