Chinese tech giants Huawei and Xiaomi (OTC: XIACF ) announced on Wednesday a global patent cross-licensing agreement covering multiple communication technologies, including 5G. The deal marks the resolution of a patent licensing dispute between the two firms that had been ongoing since earlier this year.
In March, local Chinese media reported that Huawei sued Xiaomi for alleged infringement of four registered patents. These patents primarily pertained to wireless communication technology, smartphone photography, and screen lock technology.
Following the resolution, Alan Fan, Head of Huawei's Intellectual Property Department expressed satisfaction with the outcome. "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," he said.
Ran Xu, Xiaomi's General Manager of Corporate Business Development and IP Strategy, echoed Fan's sentiments. He emphasized Xiaomi's commitment to respecting intellectual property rights and fostering long-term partnerships for shared success.
Huawei has previously struck similar agreements with other tech players such as Oppo and South Korea's Samsung (KS: 005930 .KS). In August, it renewed a similar agreement with Ericsson (BS: ERICAs ) (ERICb.ST).
The company disclosed in July that it received $560 million in royalty revenues in 2022. Furthermore, Huawei stated that it had earned more than it paid out in royalties over the last two years due to a decline in handset sales which reduced its payments to other intellectual property holders.
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