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Qualcomm is on a roll in terms of licensing agreements, having signed the big three handset makers for its combined 3G and OFDMA patent deals in 15-year agreements. The terms are undisclosed, and expected to be somewhat more generous than Qualcomm's previous deals, but this is enabling the chip giant to get major customers on board without the damaging legal disputes that surrounded the Nokia renewal. Its latest pact is with MediaTek, the Taiwanese chipmaker that is increasingly strong in low end and Chinese handsets.

In chips, MediaTek competes with Qualcomm at the low end and is seeking to move up the value chain into smartphones and other devices, especially for Asian markets. The two firms announced they have entered into a broad patent arrangement for each others' patent portfolios, including CDMA and W-CDMA essential IPR, with respect to all integrated circuit products. This deal does not seem to cover OFDMA, as the larger recent agreements have.

MediaTek's customers do not receive rights to Qualcomm's patents and need to obtain a separate license from Qualcomm and the same applies to Qualcomm clients needing MediaTek patents (though we can assume the Taiwanese firm's horde of IPR is rather smaller than its US rival's). The remainder of the terms of the arrangement are confidential.

As well as cellphones, MediaTek targets its systems-on-chip at HD TV, optical storage, and DVD and Blu-Ray products.

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