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Huawei and Qualcomm announce multi-year patent cross-license covering 5G, AI and computing
The two companies announced on October 5 a broad multi-year patent license agreement with cross-licenses across 5G, compute, AI and networking, plus Qualcomm's purchase of certain Huawei U.S. patents. The deal closes after regulatory approvals.
Why it matters
Huawei and Qualcomm announced on October 5 a multi-year, broad patent license agreement, including cross-licenses to the companies' patent portfolios across 5G, compute, artificial intelligence and networking, together with Qualcomm's purchase of certain Huawei U.S. patents in compute, AI, networking and other technologies. Huawei said it is the first patent-licensing agreement between the two covering 5G technology, and the first under which Huawei licenses and assigns patents in compute, AI and networking to Qualcomm.
Deal terms
According to the joint announcement, the agreement has two parts: cross-licenses to the companies' patent portfolios across 5G, compute, AI and networking, and Qualcomm's purchase of certain Huawei U.S. patents. The transaction will close following receipt of the necessary regulatory approvals. Both companies said the agreement reflects a shared commitment to intellectual property rights and licensing practices consistent with fair, reasonable and non-discriminatory (FRAND) principles.
Background
Huawei said its expected contract value from patent licensing agreements so far has exceeded $6.9 billion following the deal's signing. Weeks earlier, Huawei reached a cross-licensing agreement with HP covering Wi-Fi patents. Despite years of U.S. sanctions limiting its access to advanced semiconductors, Huawei remains a top patent holder in the information and communications technology field.
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