News in Short

• Huawei and Qualcomm have announced a multi-year patent licensing agreement.
• The deal covers 5G, computing, AI and networking technologies.
• Qualcomm will also acquire certain US-registered Huawei patents.
• Both companies will cross-license parts of their respective patent portfolios.
• Financial terms were not disclosed, and the deal still requires regulatory approvals.

Huawei and Qualcomm have announced a new multi-year patent licensing agreement covering several major technology areas.

The agreement spans 5G, computing, artificial intelligence and networking. It also includes Qualcomm’s purchase of certain Huawei patents registered in the US.

The transaction remains subject to the necessary regulatory approvals. The companies have not disclosed the financial terms or the specific patents involved.

The agreement is significant because both companies hold extensive intellectual property across wireless communications and computing technologies.

Deal covers 5G, AI and networking patents

Under the agreement, Huawei and Qualcomm will cross-license their patent portfolios across several technology areas.

These include 5G, compute, AI and networking.

Qualcomm will also purchase certain Huawei US patents covering computing, AI, networking and other technologies. This makes the arrangement broader than a conventional patent licensing agreement.

The companies have not revealed how many patents are covered or the value of the transaction.

Huawei said the agreement reflects its long-term investment in fundamental research and development. The company highlighted its contributions to 4G and 5G standards, including polar-code-based signal transmission technology.

Qualcomm, meanwhile, pointed to its investments in foundational wireless technologies and its 5G licensing programme.

First Huawei-Qualcomm deal covering 5G patents

The agreement also has a notable history behind it.

According to Reuters, this is Huawei’s first patent licensing deal with Qualcomm that covers 5G technologies. Huawei expects the agreement to push the total value of its patent licensing agreements beyond $6.9 billion once completed.

Huawei has been building its patent licensing business as it continues to invest heavily in research and development.

The company’s intellectual property business has generated positive revenue since 2021, according to Reuters. Its licensing activity has also become more important as Huawei develops technologies across telecommunications, computing and other areas.

Both companies emphasise fair licensing

Huawei and Qualcomm said the agreement reflects their commitment to licensing practices based on fair, reasonable and non-discriminatory (FRAND) principles.

FRAND principles are commonly associated with patents that are essential to industry standards. They are intended to ensure that companies can access essential technologies under reasonable licensing conditions.

For technologies such as 5G, standard-essential patents can play an important role because multiple companies need to implement common technical standards across devices and networks.

Agreement comes amid wider technology competition

The deal comes at a time when Huawei and Qualcomm operate within a complicated global technology landscape.

Huawei has faced US trade restrictions since 2019, limiting its access to certain advanced chips and software. The company has responded by increasing its investment in domestic technology development and expanding its own intellectual property portfolio.

Huawei has also continued to monetise its patents through licensing agreements with technology companies.

For Qualcomm, licensing remains a major part of its business alongside its semiconductor operations.

The new agreement therefore creates a commercial relationship around intellectual property between two companies that occupy important positions in the global wireless technology ecosystem.

What happens next?

The agreement has been announced but is not yet complete.

Huawei and Qualcomm said the transaction will close after receiving the required regulatory approvals. Neither company has disclosed a specific completion date.

The financial terms also remain undisclosed.

Once completed, the agreement will give both companies cross-licensing rights across a broad set of technologies while Qualcomm will acquire specific Huawei US patents.

For the wider technology industry, the deal highlights how intellectual property around 5G, AI, computing and networking is becoming increasingly interconnected.