China’s Tech Giant Huawei Reaches a Global Patent Deal With Xiaomi

Huawei Technologies on Wednesday signed a global patent cross-licensing deal with Xiaomi Inc. The deal will cover multiple communications technologies like 5G.

Alan Fan, Head of Huawei’s Intellectual Property Department said, “We are delighted to reach this licensing deal with Xiaomi.” He added, “This licensing agreement once again reflects the industry’s recognition of Huawei’s contributions to communications standards and will help us enhance our investment in researching future mobile communications technologies.”

The local Chinese media in March reported that Huawei was suing Xiaomi for an alleged breach of four registered patents. Mainly related to wireless communication technology, smartphone photography, and screen lock technology. This deal resolved the patent dispute between the two companies and will be in effect for 10 years. Later on, the companies can renew the agreement or negotiate a new one.

Ran Xu, Xiaomi’s General Manager of Corporate Business Development and IP Strategy, said, “we are glad to reach a patent cross-licensing agreement with Huawei. This shows that both parties recognize and respect each other’s intellectual property. As part of our commitment to our values around IP, Xiaomi will, as always, respect IP, seek long-term and sustainable IP partnerships for shared success, drive technology inclusion with IP, and allow more people to benefit from technology.”

Huawei also has patent license contracts with other tech corporations like Oppo and South Korea’s Samsung. Last month it renewed a similar agreement with Ericsson.

In July 2023, Huawei revealed that it had received $560 Million in royalties revenue in 2022. This made them earn more than they had paid in royalties over the last two years. This diversion was because of the decline in handset sales which meant it needed to pay less to the intellectual property holders.

Both companies can benefit from this deal in terms of invention and innovation. Huawei is one of the leading telecom equipment manufacturers and Xiaomi is the third-largest maker of smartphones in the world. With this deal, both companies will gain access to some of the finest patents.

Huawei will get a boost in developing new products and services with access to Xiaomi’s patents. And Xiaomi will not need to pay patent licensing fees to Huawei for using its class-leading communication tech. This cross-licensing agreement will help both companies develop 5G products and services too.