Huawei and Qualcomm have signed a multi-year agreement regarding the use of each other’s patents. The agreement covers areas including 5G, AI, computing, and network technology. Qualcomm will also acquire a number of Huawei’s U.S. patents.
The agreement grants both companies access to parts of each other’s patent portfolios. It is the first licensing deal between Huawei and Qualcomm to include 5G technology. The companies say they are adhering to the FRAND principles, which require licenses for standard-essential patents to be available on fair, reasonable, and non-discriminatory terms.
In addition to the cross-licenses, Huawei is selling several U.S. patents to Qualcomm. These relate to areas such as AI, computing, and network technology. Financial details of that transaction have not been disclosed. The sale is still subject to approval by the relevant regulatory authorities.
Huawei expects the total value of its patent licensing agreements to exceed $6.9 billion once the deal is finalized, Reuters reports. Since 2021, the Chinese company has been making a net profit from licensing intellectual property.
This is partly because Huawei has invested substantial amounts in research and development over the years. The importance of proprietary technology and patents increased further after U.S. trade restrictions, beginning in 2019, limited Huawei’s access to advanced chips and certain software.
