US chip leader Qualcomm has consented to pay for licensing and obtaining patents from China's Huawei Technologies for the first time in a "multi-year, extensive patent licensing agreement" that includes 5G, computing, and artificial intelligence.
The agreement included cross-licensing of the patent portfolios from both companies, the Shenzhen-based company announced, noting that it encompassed Qualcomm's acquisition of certain Huawei US patents related to computing, AI, networking, and additional technologies.
Huawei noted that the transaction did not engage any other business partnerships and was still dependent on regulatory approvals. The worth of the agreement was not revealed.
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In 2020, the two technology giants resolved a disagreement, resulting in Huawei agreeing to pay Qualcomm US$1.8 billion in overdue licensing fees. In the meantime, Huawei has been striving to capitalise on its extensive patent portfolio in telecommunications, audio, and video to enhance returns on its ongoing investments in research and development.
The latest deal not only showed “the value of Huawei’s innovations”, but also recognised Qualcomm’s “foundational contributions to modern communication technologies”, says Alan Fan, Huawei’s chief intellectual property officer.
John Han, executive vice-president and general manager of Qualcomm Technology Licensing, says the agreement “reaffirms industry recognition of Qualcomm’s 5G technology leadership” and “likewise reflects Qualcomm’s recognition of Huawei’s continued innovation and intellectual property in 5G and other technology fields”.
With the Qualcomm agreement, Huawei's overall contract value from patent licensing deals has surpassed US$6.9 billion since its initial revenue from Motorola in 2011.
Huawei has increased the reach of its intellectual property by securing over 260 licensing agreements with prominent global tech companies such as Nokia, Samsung, and Amazon, as well as local smartphone competitors like Oppo, Vivo, and Xiaomi, as stated by the company.
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As stated in its yearly report, the telecommunications behemoth allocated 192.3 billion yuan (US$28.7 billion) for research and development in 2025, representing almost 22 percent of its overall revenue. Huawei, one of the biggest patent holders globally, possessed 165,000 active granted patents around the world by 2025.
In 2022, Huawei’s founder Ren Zhengfei called on the company’s intellectual property team to enhance initiatives to monetize its extensive patent portfolio through "fair pricing" and to "achieve a suitable return" on its investments.
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