Qualcomm signs its first 5G patent deal with Huawei, and agrees to buy some of its US patents
Huawei made its first licensing payment to Qualcomm in 2001, back when it was a telecom gear maker building on other people's wireless standards. Twenty-five years later, the Chinese giant is selling patents to Qualcomm, and Huawei says the deal pushes the cumulative value of its licensing agreements to roughly $7 billion. Read Entire Article
Huawei and Qualcomm have inked a multiyear patent cross-license agreement covering 5G, compute, AI, and networking, marking their first deal of this nature that extends to 5G, according to Huawei. As part of the deal, Qualcomm plans to purchase a batch of Huawei-owned US patents in compute, AI, and networking, though neither company disclosed financial terms.
The transaction is subject to regulatory approval. This marks the start of Huawei's licensing payments to Qualcomm, which began in 2001 when Huawei was a telecom gear maker. Twenty-five years later, the Chinese company claims its licensing agreements are now worth around $7 billion. The joint announcement outlines the cross-licenses and the purchase of US patents, along with a commitment to fair licensing.
However, specific dollar figures, the duration of the deal, and the exact patents involved remain undisclosed. Each company's statement on the deal highlights a different perspective - Qualcomm's CFO sees it as confirming the success of its 5G SEP licensing program, while Huawei's IP officer emphasizes Huawei's contributions to 4G and 5G standards, highlighting polar codes as a key example.
This agreement follows another licensing deal Huawei announced with HP in August. Meanwhile, Qualcomm's licensing chief John Han noted the deal reaffirms the success of its 5G SEP licensing program, while Huawei's chief IP officer Alan Fan highlighted Huawei's work on 4G and 5G standards, specifically mentioning polar codes. The deal also comes amid Huawei's ongoing US legal battle, where the company is on trial for allegedly stealing trade secrets from US tech companies, including a racketeering charge.
Despite this, the irony of a US chip giant like Qualcomm buying patents from Huawei, which is currently under US scrutiny for alleged IP theft, is not lost on industry observers. The deal must still clear a regulatory review in the US, as Huawei is currently listed as an entity subject to US export controls.
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