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Qualcomm to pay Huawei in first 5G patent cross-licensing deal

Qualcomm to pay Huawei in first 5G patent cross-licensing deal

Money Moves

Multi-year agreement covers 5G, AI, and computing; Qualcomm also buys Huawei U.S. patents

2 days ago: Huawei and Qualcomm announce broad patent cross-licensing deal

Overview

Updated 1 hour ago

For 25 years, Huawei paid Qualcomm for wireless patent rights. On October 5, 2026, the two companies announced a deal that reverses that flow. Qualcomm will pay Huawei for the first time, under a multi-year cross-license covering 5G, artificial intelligence (AI), computing, and networking patents.

The deal is the first patent agreement between the two to cover 5G. It also includes Qualcomm's purchase of certain Huawei U.S. patents. The transaction needs U.S. regulatory approval, and Huawei's place on the U.S. Entity List since 2019 could complicate the review.

Why it matters

The deal reverses 25 years of patent payments and tests whether U.S. export controls can coexist with Huawei earning licensing revenue from an American company.

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Key Indicators

$6.9B
Cumulative value of Huawei's patent licensing deals
Expected to exceed this once the Qualcomm deal closes.
165,000
Huawei's active granted patents worldwide
As of 2025, according to the company.
25
Years since Huawei first paid Qualcomm
Huawei took its first Qualcomm license in 2001.

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Timeline

2001 October 2026

9 events Latest: 2 days ago
Tap a bar to jump to that date
  1. Huawei and Qualcomm announce broad patent cross-licensing deal

    Latest Agreement

    The two companies announce a multi-year cross-license covering 5G, AI, computing, and networking, with Qualcomm paying Huawei for the first time.

  2. Huawei's Qualcomm license expires

    Licensing

    Huawei's patent license with Qualcomm expires; Qualcomm stops counting Huawei royalties in its revenue.

  3. U.S. revokes Qualcomm's license to sell to Huawei

    Regulatory

    The U.S. revokes Qualcomm's license to sell certain hardware to Huawei, further restricting the relationship.

  4. Huawei's licensing business turns profitable

    Financial

    Huawei's intellectual property licensing unit begins generating more revenue than it pays out for other firms' patents.

  5. Qualcomm and Huawei settle dispute

    Settlement

    The two companies settle a back royalty dispute and sign a new long-term global patent license agreement.

  6. U.S. places Huawei on Entity List

    Regulatory

    The Commerce Department adds Huawei to the Entity List, restricting its access to American technology.

  7. Huawei halts royalty payments to Qualcomm

    Dispute

    Huawei stops paying royalties to Qualcomm amid a broader licensing dispute.

  8. Huawei receives first licensing income

    Licensing

    Huawei receives its first patent licensing income, from Motorola.

  9. Huawei takes first Qualcomm license

    Licensing

    Huawei, then a telecom infrastructure supplier, takes a royalty-bearing license from Qualcomm for wireless equipment.

Scenarios

1

US regulators approve the deal, Qualcomm pays Huawei

Likely Resolves by Q2 2027

Discussed by: Reuters, Nikkei Asia, industry analysts

The deal closes as announced. Qualcomm completes the purchase of Huawei's U.S. patents and begins royalty payments under the cross-license. This would mark the first time Qualcomm pays Huawei for patent rights, and it would push the cumulative value of Huawei's licensing agreements above $6.9 billion.

2

US regulators block or delay the deal

Possible Resolves by Q2 2027

Discussed by: TechSpot, MLex

The Committee on Foreign Investment in the United States (CFIUS) or the Commerce Department blocks the transaction on national security grounds, given Huawei's Entity List status. Qualcomm would be unable to complete the patent purchase, and the cross-license would not take effect.

3

Deal closes with material modifications

Possible Resolves by Q2 2027

Discussed by: TechSpot, industry analysts

The deal closes but with changes, such as the patent purchase being dropped or scaled back, or the cross-license terms being adjusted to address regulatory concerns. The core cross-license might still take effect, but the financial terms would differ from the October 5 announcement.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

July 2020

Qualcomm-Huawei settlement (July 2020)

Qualcomm and Huawei settled a back royalty dispute and signed a new long-term global patent license agreement. Qualcomm's fourth-quarter fiscal 2020 guidance included about $1.8 billion in payments due from Huawei under the settlement.

Then

The settlement resolved the dispute and established a new licensing framework between the two companies.

Now

It set the stage for the 2026 cross-licensing deal by normalizing the licensing relationship.

Why this matters now

The 2020 settlement was the direct precursor to the 2026 deal, establishing the licensing framework that the new agreement extends to 5G, AI, and computing.

April 2019

Apple-Qualcomm settlement (April 2019)

Apple and Qualcomm settled a bitter global patent dispute, with Apple paying an undisclosed sum and signing a multi-year chip supply and patent license agreement. The settlement ended litigation across multiple countries.

Then

Apple resumed using Qualcomm modems in its iPhones, and Qualcomm's licensing revenue stabilized.

Now

The settlement showed how major patent disputes in the wireless industry get resolved through cross-licenses and supply agreements.

Why this matters now

Like the Huawei deal, the Apple settlement involved a major company agreeing to pay Qualcomm for patent rights, illustrating the pattern of cross-licensing in the industry.

2014

Nokia's shift to patent licensing (2014)

Nokia sold its phone business to Microsoft and became a network equipment maker and patent licensor. Its patent portfolio, including standard essential patents, became a major revenue source.

Then

Nokia's licensing revenue grew as it monetized its patent portfolio.

Now

Nokia demonstrated that a company can thrive as a patent licensor even after exiting the consumer hardware business.

Why this matters now

Nokia's transition shows how patent portfolios can become standalone revenue engines, which is the model Huawei is increasingly following.

Sources

(10)