Huawei and Qualcomm announced a multiyear patent agreement on Monday, October 5, covering 5G, computing, artificial intelligence and networking. The announcement, issued from Shenzhen and San Diego, includes reciprocal licences and Qualcomm’s purchase of certain Huawei US patents. Completion requires regulatory approval, the companies said.
Reuters reported that this is their first patent licensing agreement covering 5G. Huawei has expanded research spending as US restrictions imposed since 2019 have limited access to advanced chips and essential software. The deal follows Huawei’s licensing agreement with HP announced in August, according to Reuters.
Huawei said the transaction would take the total value of its patent licensing agreements above $6.9 billion upon completion, Reuters reported. That figure covers its broader agreements, rather than the price of this transaction. The South China Morning Post reported that the deal’s value was undisclosed and that Huawei said it involved no other business cooperation.
The companies said their arrangement follows fair, reasonable and non-discriminatory licensing principles, known as FRAND. Qualcomm licensing executive John Han described it as recognition of both companies’ innovations. Huawei intellectual property chief Alan Fan linked the agreement to decades of research investment and contributions to mobile communications standards.
The agreement extends a longstanding licensing relationship. According to Reuters, Huawei first paid Qualcomm licensing fees in 2001 and first received licensing income from Motorola in 2011. Huawei said its intellectual property licensing business has generated positive revenue since 2021, reflecting sustained research investment.
Regulatory clearance remains the next step before completion. Data Center Dynamics reported that the companies gave no closing timetable or financial terms. For now, the announced scope comprises rights to use patent portfolios and the planned transfer of selected US patents, with the transaction still awaiting the required approvals.
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