Huawei and Qualcomm Announce Multiyear Patent License Deal Covering 5G, AI and Networking

Huawei and Qualcomm said on Monday that they have reached a broad, multiyear patent license agreement spanning 5G, computing, artificial intelligence and networking technologies, according to Reuters.

The arrangement includes cross-licenses covering the two companies’ patent portfolios. Qualcomm also agreed to buy certain Huawei patents in the United States tied to computing, AI, networking and related fields, according to Dow Jones Newswires via Morningstar.

A first 5G licensing deal between the companies

Huawei said the agreement is its first patent licensing deal with Qualcomm that covers 5G. The Chinese company also said it is the first time it has licensed and assigned patents in computing, AI and networking to the U.S. chip designer, according to Dow Jones Newswires via Morningstar.

The companies did not disclose financial terms. The transaction is expected to close after required regulatory approvals are received.

Licensing revenue and a long history

Huawei said the value of its patent licensing agreements so far has exceeded $6.9 billion following the signing, and that its intellectual property licensing business has produced positive revenue since 2021, according to Reuters. The deal follows a patent cross-licensing agreement Huawei announced with HP in August.

The two companies have dealt with each other on intellectual property for more than two decades. Huawei made its first licensing payment to Qualcomm in 2001 and received its first licensing income in 2011, from Motorola, according to Reuters.

Reporting based on coverage by Reuters and Dow Jones Newswires (via Morningstar).