Huawei and Xiaomi Reach Global Patent Cross-Licensing Agreement

China’s technology giant, Huawei Technologies, has announced a comprehensive global patent cross-licensing agreement with Xiaomi, a leading Chinese electronics manufacturer.
Huawei Harmony OSThe agreement encompasses various communication technologies, including the critical 5G technology. This announcement signifies the amicable resolution of a patent licensing dispute that had emerged between the two companies.

Earlier this year, in March, reports surfaced that Huawei had filed a lawsuit against Xiaomi, alleging the infringement of four registered patents. These patents primarily pertained to wireless communication technology, smartphone photography, and screen lock technology. However, the newly established global patent cross-licensing deal marks the end of these legal disputes.

Huawei has been actively engaging in similar patent license agreements with other prominent tech companies. Notably, the company renewed its patent agreement with Ericsson last month. In addition to Xiaomi and Ericsson, Huawei also holds patent license agreements with other industry players, including Oppo and South Korea’s Samsung.

This agreement comes against the backdrop of Huawei’s recent financial performance, where the company reported $560 million in royalty revenues for 2022. Moreover, Huawei noted that it had earned more in royalties over the past two years than it had paid out, attributed in part to the decline in handset sales, which led to reduced payments to other intellectual property holders.

The global patent cross-licensing agreement between Huawei and Xiaomi reflects a broader trend in the tech industry, as companies seek to resolve patent disputes through negotiations and collaboration, thereby fostering innovation and technological advancement.