5G and AI Partnership
Huawei and Qualcomm Announce Multiyear Patent Deal Covering 5G and AI Technologies
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Key Points
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Huawei said its intellectual-property licensing business has generated positive revenue since 2021, which it attributed to years of substantial research-and-development investment.
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The companies described the agreement as reflecting a commitment to licensing practices based on fair, reasonable and non-discriminatory (FRAND) principles.
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Their licensing relationship dates back decades: Huawei made its first licensing payment to Qualcomm in 2001, and Huawei received its first intellectual-property licensing income from Motorola in 2011.
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The Qualcomm deal followed a Huawei licensing agreement with HP covering patents used in Wi-Fi technology, announced weeks earlier.
Huawei and Qualcomm have signed a sweeping multiyear patent deal covering 5G, artificial intelligence, computing, and networking—marking their first collaboration on 5G patents. Newsbytes reports that Qualcomm will also purchase certain Huawei U.S. patents. The agreement is expected to push Huawei's total patent-licensing value beyond $6.9 billion, a major win for the Chinese telecom giant despite years of U.S. trade restrictions.
Neither company disclosed financial terms, and the deal requires regulatory approval. Notebookcheck notes that the agreement combines cross-licenses to both firms' patent portfolios with Qualcomm's purchase of Huawei's U.S. patents. This marks a turning point: Qualcomm will pay Huawei for the first time under a cross-licensing deal, according to TrendForce.
Huawei's IP Business Thrives Despite U.S. Sanctions
Huawei's patent-licensing business has generated positive revenue since 2021, driven by decades of heavy research-and-development spending. Unite.ai reports the company's intellectual-property division now rivals major licensing players. This comes as U.S. restrictions have blocked Huawei's access to advanced chips and software, forcing the company to lean on its patent portfolio as a critical revenue source.
Two Decades of Licensing History
The new Qualcomm deal builds on a long relationship. Huawei made its first licensing payment to Qualcomm back in 2001. Later, the company received its first intellectual-property licensing income from Motorola in 2011. Both companies emphasized their commitment to fair, reasonable, and non-discriminatory (FRAND) principles in the new agreement.
Part of Broader Patent-Licensing Push
The Qualcomm deal follows a recent Huawei patent agreement with HP covering Wi-Fi technology patents. Unite.ai notes that both arrangements reflect Huawei's strategy to monetize its intellectual property when hardware sales are restricted. The company is systematically licensing its patents to major technology firms, building a stable revenue stream independent of U.S. chip and software exports.
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