Huawei Technologies, the prominent Chinese tech giant, has solidified a global patent cross-licensing agreement with Xiaomi Inc (1810.HK), as officially announced by Huawei on Wednesday.
This significant development encompasses a wide spectrum of communication technologies, with a particular focus on the cutting-edge 5G technology.
Moreover, this collaborative accord signifies the amicable resolution of a patent licensing dispute that had loomed over the two tech giants.
The genesis of this harmonious pact can be traced back to earlier reports from local Chinese media in March.
During this time, Huawei had initiated legal proceedings against Xiaomi, alleging the infringement of four registered patents.
These patents primarily revolved around crucial facets of wireless communication technology, smartphone photography, and screen lock technology.
This isn’t the first instance where Huawei has ventured into such agreements.
The company has previously entered into patent licensing deals with other tech heavyweights, including Oppo and the renowned South Korean conglomerate, Samsung (005930.KS).
Notably, just last month, Huawei reaffirmed a similar agreement with Ericsson (ERICb.ST), further cementing its commitment to fostering cooperation within the tech industry.
In a noteworthy disclosure made by Huawei in July, the company revealed that it had amassed a staggering $560 million in royalty revenues in the year 2022.
Even more impressive was the revelation that Huawei had managed to surpass its royalty expenditures over the past two years.
This remarkable feat was attributed to a decrease in handset sales, resulting in reduced payments to other intellectual property holders.
In summation, the global patent cross-licensing deal between Huawei and Xiaomi underscores the importance of collaborative innovation in the tech world.
By amicably resolving their patent dispute and embracing cooperation, these two tech giants are poised to advance the realm of communication technologies, particularly in the realm of 5G, benefiting both their companies and the industry as a whole.
Moreover, Huawei’s recent financial success highlights the company’s resilience and adaptability in an ever-evolving tech landscape.