Qualcomm announced that it has signed a patent license agreement with Chinese smartphone maker, Meizu Technology Company Limited, to develop, manufacture and sell CDMA2000, WCDMA and 4G LTE complete devices.

Qualcomm, based in San Diego of California, filed patent infringement lawsuits against Meizu in June. The agreement resolves all of the patent disputes between Qualcomm and Meizu in China, Germany, France, and the US, and they have agreed to take appropriate steps to terminate or withdraw the litigations.

Qualcomm said that the royalties payable by Meizu in China are consistent with the terms of the rectification plan submitted by Qualcomm to China's National Development and Reform Commission (NDRC).

Meizu is backed by giant online retailer Alibaba Group Holding Ltd., which last year invested 590 million US dollars in Meizu without disclosing the size of its stake.

"It was a nice coincidence we are able to at this juncture push forward with the equal and fair negotiation with Qualcomm. We are confident this cooperation will add tremendous value to our user, channels, shareholders and employees," said Bai Yongxiang, president of Meizu.

This agreement comes amid a series of antitrust challenges Qualcomm faces with regard to its patent-licensing practices in regions such as Europe and the US.

The Korea Fair Trade Commission, the antitrust regulator in South Korea, ruled on Wednesday that it will fine Qualcomm 1.03 trillion won (854 million US dollars) for breaching the country’s competition law by licensing the patents only to handset makers, limiting rival chip makers’ access to its technology, among other practices.

The fine, the largest ever imposed in South Korea, marks the latest antitrust setback for Qualcomm's most profitable business of licensing wireless patents to the mobile industry, at a time when the business is facing headwinds from a cooling smartphone market.

The penalties won’t be carried out until the commission issues a formal written decision, and Qualcomm has vowed to appeal the decision to the Seoul High Court.

Qualcomm was required to pay a 975 million-dollar fine and to modify its patent-licensing practices by China’s NDRC in February 2015 after an antitrust probe.

The settlement with NDRC affirmed that Qualcomm’s basic licensing scheme of charging royalties based on the purchase price of an entire smartphone rather than its components – an arrangement that could be weakened by the South Korean regulator’s decision.

China has been a resurgent market for Qualcomm. In late 2015, Qualcomm  announced that it had signed licensing agreements with a number of Chinese clients, including Huawei Technologies Company and Xiaomi Corporation.

Qualcomm gets 57 percent of its revenues from China in fiscal year 2016.

Qualcomm said it expects rising demand for smartphones in China, especially in units equipped with the latest fourth-generation technology.