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The agreement covers patent rights in AI, 5G, computing and networking.
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Qualcomm will also purchase selected Huawei US patents.
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Completion depends on regulatory approvals.
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The companies have not disclosed the price or royalty rates.
October 05, (THEWILL) – Huawei and Qualcomm have agreed to share access to parts of their patent portfolios in a multiyear deal that also involves the American chipmaker buying selected US patents from its Chinese counterpart.
Announced on Monday, October 5, the agreement covers 5G, artificial intelligence, computing and networking. The transaction will close after the necessary regulatory approvals, according to the company announcement.
The arrangement gives the companies a way to earn from and use each other’s inventions while continuing to compete in the technology industry. Financial terms were not disclosed.
Patent Access and Ownership
The deal combines cross-licensing with a patent purchase. Cross-licensing grants agreed rights to use patented inventions while ownership remains with the patent holder. A purchase transfers ownership of the specified patents.
Here, Qualcomm will acquire certain Huawei US patents covering computing, AI, networking and other technologies. The announcement does not identify individual patents or explain which products will use them.
John Han, executive vice president and general manager of Qualcomm Technology Licensing, said the agreement reflected recognition of Huawei’s “continued innovation and intellectual property in 5G and other technology fields.”
The companies said their licensing approach follows fair, reasonable and non-discriminatory principles, commonly known as FRAND. However, without the contract’s pricing and conditions, outsiders cannot assess the financial balance between them.
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Huawei Expands Its Licencing Business
Huawei described the agreement as its first patent-licensing deal with Qualcomm covering 5G. It follows a licensing agreement with HP announced in August, Reuters reported.
The company said completion would take the total value of its patent-licensing agreements above $6.9 billion. That figure covers multiple agreements, rather than the price of the Qualcomm transaction, and should not be presented as cash received from this deal.
Licensing allows research to generate income beyond sales of a company’s own equipment. Another manufacturer may pay to use an invention even when the two businesses compete for customers.
For telecom operators and device buyers, however, Monday’s announcement establishes no change in equipment prices or availability.
The immediate development concerns rights to technology. How those rights translate into products, licensing income, and costs will become clearer only as the agreement is completed and implemented.
Joy Onuorah is a business journalist and brand communications specialist covering financial markets, artificial intelligence, digital economy, and the ideas reshaping business across Africa and the global market. Beyond her reporting for TheWill, Joy uses brand strategy, storytelling, copywriting, and high-value SEO to help brands build lasting market authority.
