And now they are just giving it away ?
To the people that say "why can't Huawei make a 5G phone". Huawei was manufacturing their chips with 5G modems at TSMC until the US went after them trying to turn them into HTC or Alstom Energy, but it failed. It's one of the reasons why Taiwan now has zero leverage as the US has been hollowing them out since the last administration. But Huawei have been building their own domestically produced modems for a few years now.
I used to attend the communication network meetups with all the professors in Germany and mI think all of them agree that all that energy sanctioning China should have been spent on actual competition domestically in the West.
There's a long history of various companies doing patent license deals like this in the telecom industry. Nokia still earns a lot of money this way, for example. Apple settled with them on a few occasions.
Speaking of which; Apple has its own 5G chips now so they are a bit less dependent on Qualcomm now. Huawei and Apple both have a lot of their own in house technology at this point. But of course Qualcomm always was a strong IP company with lots of patents and its impossible for either to make phones without infringing on at least some of those patterns. And vice versa, a lot of Qualcomm's stuff would necessarily infringe on some patents by others.
That's why these cross licensing deals like this are usually the outcome of disputes around IP.
Is it potentially anticompetitive? Yes.
No breakdown on the age of the patents though so it'd be interesting to see how things evolve over the years.
That's now how standards work - to become 5g the tech needs to be implementable by everyone at a FRAND cost (fair, reasonable, and non-discriminatory). Sharing patents just means Qualcomm and Huawei won't bill each other.
Huawei is a massive R&D company - I'm sure they're contributing as much as Qualcomm
Qualcomm will benefit greatly from this arrangement.
Canada remembers how fucked over we got in espionage.
Now Qualcomm’s just giving them it on a silver platter.
Pre sanctions, HW fine buying QC for mobile chipset StandardEssentialPatentswhile QC pay HW for 5g SEPs, with net balance favoring QC. Huawei indigenized mobile SoC + 5g hardware with Kirin 9000 in 2023. Hilariously, now that Huawei weaned off QC SoC... QC simply stuck net paying Huawei.
1. is no longer a threat for the US
2. no longer has (perhaps never had), the lead
3. was forced to bow down because has no leverage
The US still chooses what customers China has access to
The interesting questions for me: 1) what FRAND rate they settled on, since that becomes a comp for future deals with smaller OEMs who don't have a portfolio to trade, and 2) how Entity List / regulatory approvals shape the structure — the announcement says closing follows regulatory approvals, which suggests carve-outs around what's actually transferable vs. pure patent peace. For startups the takeaway is sobering: the "patent wall" effect mentioned here means you're licensing from an oligopoly whether you build infrastructure or devices.
Neither company can ship modern cellular basebands or RAN silicon without stepping on the other's portfolio. FRAND terms make endless global litigation a negative-ROI exercise, Entity List or not. Cross-licensing is the only operational path to extract rents and lock third parties out.
Someone has to tear it down, and it's not going to come from within. No balls on this side.
Like FFII.org predicted in 2006:
"In July 2005, after several failed attempts to legalize software patents in Europe, the patent establishment changed its strategy. Instead of explicitly seeking to sanction the patentability of software, they are now seeking to create a central Unitary patent court (UPC), which would establish and enforce patentability rules in their favor, without any possibility of correction by competing courts or democratically elected legislators."
Not to mention the judges in that court are part time working for Nokia or Airbus.
Apple ordered to pay $5.7bn after losing vibration tech patent suit (https://www.bbc.com/news/articles/c6je85n2vyleo)
You can ask AI to summarise the list of when for example apple ignored patents. I get 16 cases.
Consumers will likely pay incrementally higher prices though.
Qualcomm does more than 5 billion a year in patent licensing revenue. It's a licensing behemoth.
> Nokia reaches 7,000 patent families declared as essential to 5G
https://www.nokia.com/newsroom/nokia-reaches-7000-patent-fam...
I'm not talking about the company which makes "Nokia Phones". I'm talking about Nokia the infrastructure company.
They've been making their own 5g phones since 2023 (mate 60)
Edited: To reply to a child post, this is about the allegations referred to in the parent, not a statement of what I think is true now