Qualcomm is one of the world’s foremost licensees of patents related to cellular technology. According to analysts, the company has 170 patents related to long-term evolution (LTE) cellular technology alone, and in its last fiscal year, generated $8.2 billion on patent royalties for cellular communication. That figure was up from $7.9 billion in the previous year.
Ownership of the basic methods that chips inside mobile devices use to connect to cellular networks are a critical piece of Qualcomm’s patent portfolio. If a device can connect to a cellular network on just about any mobile phone service around the world, a small royalty is technically required to be paid to Qualcomm for that right.