Huawei and Xiaomi Announce New Cooperation Agreement and End Patent Dispute

Editorial, CNBC Indonesia

Tech

Wednesday, 13/09/2023 15:20 IWST

Photo: Huawei Mate 60 pro. (Reuters/Aly Song)

Jakarta, CNBC Indonesia – Huawei Technologies and Xiaomi Inc announced a new cooperation agreement. The two Chinese electronics manufacturers will share technology.

Reuters reported that the global patent license sharing agreement between Huawei and Xiaomi was announced by Huawei on Wednesday (13/9/2023). The license sharing agreement covers communications technologies including 5G.

By achieving cooperation on various licenses, Huawei and Xiaomi also ended a dispute over licensing that had been going on for months.

In March, Chinese media reported that Huawei took Xiaomi to court alleging infringement of four patents. The majority of patents that are the source of disputes relate to communications technology, HP photo cameras and HP screen locking systems.

According to Reuters, Huawei previously had an agreement regarding patent licensing with other big players in the HP industry such as Oppo and Samsung. Last month, Ericsson also announced an extension to its licensing agreement with Huawei.

Patent licensing is one of Huawei’s main sources of income amidst problems in their consumer electronics product business, including cellphones.

Throughout 2022, Huawei’s income from royalties will reach US$ 560 million. Huawei’s royalty income now far exceeds its spending on patent licenses belonging to other companies since Huawei’s cellphone sales fell.

Sales of Huawei cellphones have slumped in recent years since the United States government banned US companies from doing business with Huawei.

However, the appearance of the Huawei Mate 60 Pro is a breath of fresh air for Huawei’s cellphone business. The new Huawei cellphone is said to use a sophisticated processor made in China. This means that Huawei and other Chinese cellphone manufacturers are no longer dependent on US-made chips.

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