According to the March 7th Beijing time March 7th report, people familiar with the matter said that Qualcomm Corp is consulting with HUAWEI to conciliate the patent dispute between the two sides. HUAWEI has been refusing to pay a considerable amount of patent fees to Qualcomm.

People familiar with the matter said the negotiations were progressing smoothly and it was expected to reach a settlement agreement within a few weeks. However, the negotiations could also break up and fail to ensure an agreement. At present, Qualcomm is blocking a hostile takeover launched by the Broadcom Corp, which has also reached a political level. It is not clear how the controversial takeover could affect the willingness and ability of Qualcomm and HUAWEI to reach a settlement agreement.

HUAWEI has yet to comment. A HUAWEI representative said Qualcomm was an important partner, and HUAWEI was an important customer.

Qualcomm does not comment.

HUAWEI is the second patented customer who refused to pay the patent fee to Qualcomm after the Apple Corp. Apple has asked its agent to stop paying patent fees to Qualcomm. Previously, apple industry and Commerce had been paying patent fees to Qualcomm until 2016.

Once Qualcomm successfully agreed with HUAWEI to maintain its old patent fee structure, it might be able to raise Qualcomm chips before Qualcomm's annual shareholders' meeting. Qualcomm was originally scheduled to hold a general meeting in March 6th to vote for the nomination of the candidates. However, the US Foreign Investment Commission has asked Qualcomm to postpone the holding of the shareholders' meeting to carry out a comprehensive survey of the Bo's offer. Now, Qualcomm has postponed the meeting of shareholders to April 5th.

Qualcomm has said a solution to a patent fee dispute with mobile phone makers can make the company recover billions of dollars in patent fees. Whether Qualcomm is able to achieve a target of $6.75 to $7.50 per share in the fiscal year of 2019, it is crucial to recover patent fees.

In recent years, Qualcomm's patent licensing model has been attacked by apple, HUAWEI and multinational regulators. Many countries have fined high Qualcomm and forced them to change part of their business. At present, Qualcomm is appealing for some of the penalties.

Apple filed a lawsuit in the United States in January 2017 and subsequently extended its litigation to other countries. Qualcomm disclosed it in the second quarter financial report. The company also had disputes with another authorized customer. Qualcomm has refused to confirm this customer is HUAWEI, said the company's policy is to resolve disputes in private before go to court.

In 2015, Qualcomm reached a settlement with the China Development and Reform Commission (NDRC) and agreed to pay a fine of $975 million. The conciliation agreement forced some Chinese authorized customers who refused to pay patent fees to start paying patent fees to Qualcomm.