Qualcomm collects 5 tln won in royalties from S. Korea: lawmaker

SEOUL, Oct 10, 2008 (Asia Pulse Data Source via COMTEX) -- QCOM | Quote | Chart | News | PowerRating -- Qualcomm Inc., a U.S. wireless technology company, has received about five trillion won (US$3.5 billion) in royalties from South Korean mobile phone manufacturers over the past 14 years, a lawmaker said Thursday.

Rep. Hong Jang-pyo of the ruling Grand National Party blamed the royalty payments to Qualcomm for the nation's burgeoning deficits in technology trade, citing data by the Korea Intellectual Property Office.

Qualcomm holds core code division multiple access (CDMA) technology used in mobile phones. South Korean companies were the first in the world to commercialize the technology.

South Korea is home to Samsung Electronics Co. and LG Electronics Inc., the world's second and fourth largest maker of mobile phones, respectively.

"The bigger problem is that the royalty contracts with Qualcomm won't end for another 20 years," Hong said in a statement.

As the CDMA technology evolves, Qualcomm and South Korean firms have extended some of their contracts for royalty payments, Hong claimed.

Qualcomm is believed to collect 5.25 percent in royalties of all local sales and 5.75 percent of exports of mobile phones from South Korean firms.

The U.S. company is also known to receive six percent of local sales and 6.5 percent of exports of mobile-phone systems.

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