China’s Huawei Technologies has reached a multi-year patent licensing agreement with Qualcomm, covering key technologies in 5G, artificial intelligence, computing and networking.
The agreement includes cross-licensing of patents held by both companies, as well as Qualcomm’s purchase of selected Huawei patents in the United States covering computing, AI, networking and other technologies. The financial value of the transaction was not disclosed.
The deal is significant because it marks Huawei’s first patent licensing agreement with Qualcomm to include 5G technologies. It also changes a relationship that has historically seen Huawei pay Qualcomm for access to its technology.
Huawei said the agreement is expected to push the total value of its patent licensing agreements above $6.9 billion once completed. The company has expanded its intellectual-property licensing business in recent years as it seeks to generate more revenue from decades of research and development investment.
The transaction remains subject to regulatory approvals. It comes amid continuing US-China technology tensions, with restrictions having limited Huawei’s access to advanced foreign chips and other technologies.
For Qualcomm, the agreement provides access to Huawei’s growing portfolio of patents, while Huawei gains another major licensing relationship as it strengthens its position in 5G and AI technologies.
Leave a comment