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

Agreement covers 5G, networking and AI

Huawei and Qualcomm announced a multi-year patent licensing agreement under which each company will provide access to the other's patented technology solutions across 5G, networking and AI. The companies described the arrangement as broad and said it could support progress in mobile communications and other related fields.

The financial terms were not disclosed. According to Huawei and Qualcomm, the agreement demonstrates Huawei's innovation in 5G and AI while recognizing Qualcomm's contribution to modern communications. It is the first licensing deal between the two companies to include 5G technology.

Long-running dispute comes to an end

The agreement ends a prolonged dispute over financial and patent issues. In 2017, Huawei said Qualcomm was overcharging phone manufacturers to use its chipsets and stopped paying royalty fees. The situation worsened after Huawei was hit by US sanctions.

Huawei later agreed to pay Qualcomm $1.8 billion in one payment for fees omitted during the dispute and signed a cross-licensing agreement. Under the new deal, Qualcomm will also pay Huawei to use its patents and technologies for the first time.

Huawei points to R&D revenue growth

Alan Fan, Huawei's chief intellectual property officer, said the company has achieved positive revenue growth since 2011 because of heavy research and development investments. Huawei's total patent licensing deals could soon exceed $6.9 billion with the new contract.

The executive vice president and general manager of Qualcomm Technology Licensing said the agreement reaffirms industry recognition of Qualcomm's 5G technology leadership and its 5G SEP licensing program. The executive also said it reflects Qualcomm's recognition of Huawei's continued innovation and intellectual property in 5G and other technology fields.

Sources: Techmeme