Huawei, Qualcomm sign multi-year patent deal covering AI, 5G tech
What's the story
Huawei Technologies has announced a multi-year patent licensing agreement with Qualcomm. The deal covers a wide range of technologies, including artificial intelligence (AI), 5G, computing, and networking. As part of the agreement, Qualcomm will acquire certain US patents from Huawei that are related to computing, AI, and networking. This is also the first time Huawei has signed a patent licensing deal with Qualcomm for 5G technologies.
Financial impact
Huawei's patent licensing agreements are likely to surpass $6.9 billion
Huawei has said that the new deal is likely to push the total value of its patent licensing agreements beyond $6.9 billion when finalized.
The company also revealed that its intellectual property licensing business has been generating positive revenue since 2021, thanks to years of heavy investment in research and development (R&D).
This comes after US trade restrictions imposed in 2019 limited Huawei's access to advanced chips and critical software.
Licensing journey
Company's ongoing efforts to expand its licensing business
Huawei made its first licensing payment to Qualcomm in 2001 and received its first licensing income from Motorola in 2011.
The latest deal with Qualcomm comes after a similar agreement with HP Inc. which was announced by Huawei in August.
These moves highlight Huawei's strategy of leveraging its technology portfolio to remain resilient amid changing global market dynamics.