Huawei and Qualcomm sign patent deal covering 5G, AI and networking

Huawei and Qualcomm have agreed to a multi-year patent licensing deal covering 5G, AI, computing and networking, and announced the agreement today.

“This agreement not only demonstrates the value of Huawei’s innovations, but also recognizes Qualcomm’s foundational contributions to modern communication technologies,” said Alan Fan, Huawei’s Chief Intellectual Property Officer.

Under the deal, each company can use the other’s patents in those fields. Qualcomm will also buy some of Huawei’s US patents in computing, AI, networking and other areas. That purchase will close once regulators approve it.

It is the first licensing deal between the two that covers 5G, and neither company disclosed financial terms or royalty rates.

Huawei expects the agreement to raise the total value of its patent licensing deals to more than $6.9bn once it is complete. The company also said its licensing business has been revenue-positive since 2021.

The relationship between the two firms has changed over time. Huawei made its first licensing payment to Qualcomm in 2001 and received its first licensing income a decade later from Motorola.

“This agreement reaffirms industry recognition of Qualcomm’s 5G technology leadership and the success of Qualcomm’s 5G SEP licensing program,” said John Han, Executive Vice President and General Manager of Qualcomm Technology Licensing.

Meanwhile, Huawei has spent heavily on research since 2019, when US trade restrictions began to limit its access to advanced chips and key software. Those restrictions do not automatically block patent licensing deals.

The Qualcomm agreement follows a Wi-Fi patent deal Huawei signed with HP in August. HP later said that deal settled a legal dispute and was not a wider partnership with Huawei.