Leading chipset maker, Qualcomm has recently entered into a patent licensing agreement with Chinese OEM – Zhuhai Ewpe Information Technology Inc. EWPE is a subsidiary of Gree Electrical Appliances Inc, a manufacturer of home electrical appliances. Gree, being a manufacturer of home electrical appliances, is expanding its reach to smart connected appliances that require wireless modems and radios for internet connectivity. Since Qualcomm holds a large number of standard essential patents in 3G and 4G LTE technologies, which are required for connectivity, Gree will have to pay royalties to Qualcomm for using these technologies in its devices. Given below is an analysis to estimate the implication of this deal for Qualcomm:

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