Changes in US stocks | Qualcomm (QCOM.US) rose more than 4% before the market and reached a multi-year patent license agreement with Huawei

The Zhitong Finance App learned that Huawei and Qualcomm (QCOM.US) announced on Monday that they have reached a multi-year extensive patent licensing agreement, which includes cross-licensing of the two parties' patent portfolios in various fields such as 5G, computing, artificial intelligence, and networking, as well as Qualcomm's acquisition of some of Huawei's US patents. The deal will be completed after obtaining the necessary regulatory approvals. As of press time, Qualcomm is up more than 4% in the premarket.

According to reports, this is the first patent license agreement between Huawei and Qualcomm covering 5G technology. Once completed, the deal is expected to drive the total value of its patent licensing agreements to more than $6.9 billion, Huawei said.

Huawei said that since 2021, its intellectual property licensing business has achieved positive revenue, reflecting continued investment in R&D over the years.

Huawei first paid license fees to Qualcomm in 2001, and received license revenue from Motorola for the first time in 2011. Prior to reaching an agreement with Qualcomm this time, Huawei announced in August this year that it had reached a patent license agreement with HP.