Huawei, Qualcomm Sign Multiyear Patent Cross-Licensing Deal

This agreement marks a notable shift in the long-standing intellectual property relationship between Huawei and Qualcomm. While Huawei has paid royalties to Qualcomm for decades, this cross-licensing and patent purchase arrangement makes Qualcomm a net payer to Huawei for the first time, as reported by Nikkei Asia. Huawei has stated that its intellectual property licensing business has generated net profit from 2021, according to Reuters, reflecting its sustained investment in research and development.

The deal's scope includes 5G, AI, and networking, areas of significant strategic importance for both companies. Qualcomm's acquisition of Huawei's U.S. patents in computing, AI, and networking suggests a recognition of Huawei's technological contributions in these domains. Despite market speculation, Qualcomm told Daily Economic News that claims linking the deal to logic folding technology were untrue and that reports describing Qualcomm as a net payer under the agreement were inaccurate.

Huawei expects the total value of the deal to exceed $6.9 billion, or approximately 9.2 trillion won. A deal of this size could be subject to review by the U.S. Federal Trade Commission. The specific terms, number of patents covered, and business plans were not disclosed by either company, with Qualcomm stating the terms were confidential.