Qualcomm and Huawei Strike Broad 5G Patent Deal
The multi-year agreement covers cross-licensing across 5G, computing, AI and networking, while Qualcomm will buy certain Huawei-owned US patents.
What you need to know
- Qualcomm and Huawei have agreed multi-year cross-licences covering 5G, computing, AI and networking.
- Qualcomm will also buy certain Huawei-owned US patents, subject to regulatory approvals.
- Financial terms, royalty arrangements and the patent purchase price have not been disclosed.
Qualcomm and Huawei have signed a multi-year patent-licensing agreement covering 5G, computing, artificial intelligence and networking technologies.
Announced on 5 October, the deal gives both companies cross-licences to their patent portfolios in those areas. Qualcomm will also purchase certain Huawei-owned US patents covering computing, AI, networking and other technologies.
The transaction still requires the necessary regulatory approvals before it can close. Neither company disclosed the value of the agreement, the price Qualcomm will pay for the patents, or the detailed royalty arrangements between the pair.
A broader agreement than before
Reuters reports that this is Huawei’s first patent-licensing agreement with Qualcomm to cover 5G technologies. It follows a 2020 settlement and long-term patent licence between the companies, under which Qualcomm recorded US$1.8 billion in fiscal 2020 relating to settlement amounts and royalties.
Huawei said the new agreement is expected to take the total value of its patent-licensing agreements above US$6.9 billion once completed.
What it means for UK buyers
No phone, laptop, router, chipset or other consumer product was announced alongside the deal, and there is no confirmed immediate effect on products sold in the UK.
In practical terms, broad cross-licensing can give companies clearer permission to use one another’s patented technology and may lower the risk of legal disputes disrupting future devices. It does not, however, confirm that Huawei will use Qualcomm chips in future products, or that shoppers will see changes to prices, performance or 5G features.
Why it matters
This is an industry agreement rather than a product launch, so there is no confirmed immediate change for UK phone, laptop or router buyers. The cross-licences could reduce the risk of future patent disputes around 5G and related technology, but there is no guarantee it will affect device prices, availability or features in Britain.
Sources and evidence (8)
- qualcomm.com (other)
- investing.com (other)
- datacenterdynamics.com (other)
- huawei.com (other)
- sec.gov (other)
- huawei.com (other)
- reuters.com (other)
- techmeme.com (other)