SUMMARYHuawei and Qualcomm announced a multi-year patent licensing agreement covering 5G, artificial intelligence, compute, and networking technologies, along with Qualcomm’s purchase of certain Huawei U.S. patents. The deal includes cross-licenses under FRAND terms and will close after regulatory approvals. Huawei said the agreement could lift the cumulative value of its licensing deals above $6.9 billion, while U.S. export controls have continued to constrain its access to advanced chips and software.
An anonymous reader quotes a report from Quartz: Huawei and Qualcomm on Monday announced a multi-year, broad patent license agreement covering 5G, artificial intelligence, compute, and networking technologies, along with Qualcomm's purchase of certain Huawei U.S. patents in those same fields. The deal is the first patent licensing agreement between the two companies to cover 5G technologies, according to Reuters. Huawei said the agreement is expected to bring the cumulative value of its patent licensing deals above $6.9 billion upon closing.
The agreement includes cross licenses to both companies' patent portfolios and is structured around fair, reasonable, and non-discriminatory, or FRAND, principles, the company said. The transaction will close following receipt of the necessary regulatory approvals. [...] The company noted that its intellectual property licensing unit has been profitable since 2021. Huawei made its first licensing payment to Qualcomm in 2001 and received its first licensing income, from Motorola, in 2011, according to Reuters. American export controls that took effect in 2019 have curtailed Huawei's access to cutting-edge chips and essential software, according to Reuters. The constraints pushed Huawei to increase its research and development spending in recent years.