Huawei and Qualcomm sign 5G and AI patent cross licensing deal

In short: Huawei and Qualcomm have agreed to share patents related to 5G, AI and networking, and Qualcomm will also buy some Huawei patents in the US.

What happened

Huawei, the Chinese tech company, and Qualcomm, the US chipmaker, announced a cross licensing agreement. Cross licensing is like two companies swapping keys to their idea vaults, so each can legally use the other’s patented inventions.

The agreement covers patents tied to 5G (the current generation of mobile networks), AI (software that can produce text, images, or decisions), and networking technology. Qualcomm will also purchase some of Huawei’s US patents.

Because the total value of the transaction passes $133.9 million, it is expected to trigger a regulatory review in Washington. The Financial Times reports this would be the first time Qualcomm is a net payer to Huawei in a relationship that goes back about 25 years.

The patents include Huawei’s newer chip and system design ideas, which it calls the Tau Scaling Law. Huawei introduced this work in May and said it was developed to cope with US export controls that have limited Huawei’s access to advanced chips made abroad.

The announcement came shortly after a summit in Washington between US President Donald Trump and China’s leader Xi Jinping, at a time when tensions between the two countries remain high.

Why it matters

Patents shape who can build and sell important tech, and at what cost. Deals like this can affect the price and pace of products people use every day, like phones and the data centers that run online services.

Source: Financial Times