China United Telecommunications Corporation (China Unicom) and US-based Qualcomm Incorporated signed a CDMA Intellectual Property Rights framework agreement Wednesday in Beijing.

The deal defines the guidelines and procedures in the licensing of Qualcomm's intellectual property for the manufacturing and sale of CDMA wireless equipment by domestic Chinese manufacturers.

Chinese enterprises that have obtained CDMA subscriber terminals or system equipment manufacturing licenses from the Chinese government may sign an agreement with Qualcomm which conforms to this framework. They are entitled to the privileges granted by the agreement in making and selling CDMA products nationwide. They are also allowed to export their products.

Qualcomm has pledged to offer price incentives for purchasing CDMA Application Specific Integrated Circuits to every Chinese firm that signs an agreement with it.

In addition, Qualcomm has agreed in principle that it will cooperate with Chinese entities in research and development efforts to advance CDMA application and growth.