Qualcomm Pays Huawei for Patents for First Time in Historic 25-Year Reversal

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Qualcomm and Huawei signed a multi-year patent licensing deal covering 5G and AI technologies, marking a historic shift where Qualcomm becomes the net payer for the first time since 2001. The cross-licensing agreement also includes Qualcomm's outright purchase of certain Huawei US patents, pending regulatory approval.

Qualcomm Huawei Patent Licensing Deal Reverses 25-Year Payment Flow

Qualcomm and Huawei announced a multi-year patent licensing deal that fundamentally reshapes their relationship, with Qualcomm becoming the net payer to Huawei for the first time in their 25-year licensing history

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. The cross-licensing agreement covers 5G and AI technologies, along with computing and networking patents, marking the first licensing deal between the two companies specifically addressing 5G technologies

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. This reversal comes after Huawei made its first licensing payment to Qualcomm in 2001, with money flowing in one direction for more than two decades

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Source: Gadgets 360

Source: Gadgets 360

Qualcomm to License Huawei Patents Under New Agreement

Under the agreement, Qualcomm will pay to use more than 680 Huawei patents, representing 0.23% of Huawei's 296,248 active or pending patents

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. The Huawei patent portfolio covers critical technologies including near-packaged optics interconnects and patents related to LogicFolding chip technology, already deployed in the Kirin 9050 and 9050 Pro processors powering the Mate XT 2

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. Additionally, Qualcomm will purchase certain Huawei US patents outright across compute, AI, and networking domains, though this transaction requires regulatory approval before closing

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. While neither company disclosed financial terms or royalty rates, reports indicate the value exceeds the $133.9 million threshold requiring FTC review under the Hart-Scott-Rodino Act

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Source: The Next Web

Source: The Next Web

FRAND Principles and Intellectual Property Recognition

Both companies emphasized that the multi-year patent licensing deal reflects their commitment to intellectual property rights and licensing consistent with fair, reasonable and non-discriminatory (FRAND) principles

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. Alan Fan, Huawei's Chief Intellectual Property Officer, stated that the agreement demonstrates the value of Huawei's innovations while recognizing Qualcomm's foundational contributions to modern wireless technologies

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. John Han, Executive Vice President and General Manager of Qualcomm Technology Licensing, noted that the agreement reaffirms industry recognition of Qualcomm's 5G technology leadership while acknowledging Huawei's continued innovation in 5G, AI, compute, and networking

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. The deal involves no other business cooperation, implying no chip sales are part of the arrangement

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Huawei's Patent Portfolio Growth Despite US Trade Restrictions

Huawei's strengthened patent position reflects years of heavy investment in research and development, particularly after US trade restrictions since 2019 limited its access to advanced chips and crucial software

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. The company now holds 165,000 active granted patents worldwide and has stated that its intellectual property licensing business has generated positive licensing revenue since 2021, meaning it receives more from licensing than it pays for other firms' patents

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. Huawei expects the Qualcomm agreement to push the total value of its patent licensing agreements past $6.9 billion once completed, building on more than 260 deals with companies including Nokia, Samsung, Amazon, and HP

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. The company received its first licensing income in 2011 from Motorola, and the Qualcomm deal follows a Wi-Fi patent cross-license signed with HP in August

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. This transformation demonstrates how US trade restrictions pushed Huawei to accelerate internal innovation, with that research and development spending now generating returns through licensing revenue.

Source: Tom's Hardware

Source: Tom's Hardware

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