Huawei and Qualcomm Just Signed a Patent Licensing Deal

Huawei and Qualcomm have entered into a comprehensive, multi-year patent cross-licensing agreement encompassing technologies such as 5G, computing, artificial intelligence, and networking. This marks the first licensing arrangement between the two firms that incorporates 5G among other technologies. As part of the deal, Qualcomm will purchase specific US patents from Huawei, covering advancements in computing, AI, networking, and other areas.

However, this transaction necessitates regulatory approval before it can be finalized. Since 2019, Huawei has been subject to US trade restrictions, which means the agreement will also need to undergo scrutiny by US authorities.

While Huawei and Qualcomm did not disclose the financial details of the deal in their joint announcement, Reuters reported that upon completion, the total value of Huawei's patent licensing agreements will surpass $6.9 billion. Huawei has ramped up its research and development investments over the past few years as it strives to develop chips and technologies it previously acquired from companies like Qualcomm.

Both companies emphasized their respective technological contributions in the joint statement. Huawei's Chief Intellectual Property Officer, Alan Fan, highlighted the company's substantial long-term investment in research, which has led to advancements in mobile communications and other technology fields. He specifically mentioned Huawei's contributions to 4G and 5G standards, including polar-code-based signal transmission technology, and noted that the agreement acknowledges the value of innovation from both companies.

On the other hand, Qualcomm's Technology Licensing Executive Vice President and General Manager, John Han, underscored Qualcomm's investments in foundational wireless technologies that have supported numerous generations of mobile communications. Han emphasized that the agreement reflects recognition of Qualcomm's 5G technology and licensing program, while also honoring Huawei's intellectual property and ongoing innovation in 5G and other areas.