Huawei and Qualcomm sign multi-year 5G and AI patent licence deal

Huawei and Qualcomm have signed a broad multi-year patent licence agreement covering artificial intelligence, 5G, computing and networking technologies, Huawei said on Monday — the first patent deal between the two companies to cover 5G.

The agreement includes cross-licences to both companies’ patent portfolios across those technology fields, together with Qualcomm’s purchase of certain Huawei US patents in compute, AI and networking, according to a joint statement. It is also the first deal under which Huawei licenses and assigns patents in compute, AI and networking to the US chip designer, Huawei said, as reported by Dow Jones Newswires.

Huawei said the agreement is expected to push the total value of its patent licensing deals to more than $6.9 billion once completed, and that its intellectual-property licensing business has generated positive revenue since 2021. Nikkei Asia reported that Qualcomm will pay to use more than 680 of Huawei’s patents, making it the net payer for the first time — Huawei first paid to license Qualcomm patents in 2001.

The transaction will close once regulatory approvals are received; Nikkei reports the deal’s value crosses the $133.9 million threshold that subjects it to US Federal Trade Commission review under the Hart-Scott-Rodino Act. The companies say the agreement reflects their shared commitment to intellectual property rights and licensing on fair, reasonable and non-discriminatory terms.

“Huawei’s decades of sustained investment in fundamental R&D have driven innovation and progress in mobile communications and other technology fields,” said Alan Fan, Huawei’s chief intellectual property officer. Qualcomm’s John Han said the deal “likewise reflects Qualcomm’s recognition of Huawei’s continued innovation and intellectual property in 5G and other technology fields.”

The Qualcomm deal follows a cross-licensing agreement with HP Inc announced by Huawei in August, covering Wi-Fi patents, Reuters reported.