Chinese smartphone manufacturer Meizu has agreed to settle its dispute with US mobile chip company Qualcomm under a new global patent licensing scheme. Meizu will pay licensing fee to Qualcomm.

In a joint statement released by both companies on Friday, it was announced that Qualcomm granted a global royalty based patent license to Meizu. With this patent, the Chinese company will be able to develop, manufacture, and sell 3G and 4G devices. Meizu was sued by Qualcomm in China as well as in France, Germany, and the US. The new agreement resolved the issue in all the concerned countries.

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The joint statement also claimed that both the companies will "take appropriate steps to terminate or withdraw the patent infringement litigations and respective invalidity proceedings or other related litigations."

Meizu officials have welcomed the settlement. Bai Yongxiang, the president of Meizu, said that the company will focus on developing designs for high tech products.

Qualcomm stated that Meizu will pay the royalties on the lines of terms of the rectification plan submitted by it to China's National Development and Reform Commission (NDRC).

In 2015, Qualcomm had paid $975 million for settling a case filed by NDRC. The company was accused of misusing its leading position in chip for mobile devices market. The US chip giant is looking to protect its unique position in the industry.

Last month, Qualcomm faced a record $853 million fine slapped by South Korea's antitrust regulator for violating antitrust laws. The company is also being investigated in several other countries including Taiwan and the US.

TagsMeizu, Qualcomm, Patent, Smartphone