Huawei And Amazon Enter Into a Patent Licensing Agreement

(CTN News) – According to reports, Huawei Technologies (HWT.UL) and Amazon (AMZN.O), two of the largest tech companies in the world, have signed a multi-year patent licensing agreement that resolves their long-running litigation.

Huawei has not revealed the bulk of the details about the deal, but Alan Fan, Huawei’s director of intellectual property rights, has revealed some important details about the contract.

The Chinese company settled a German lawsuit filed against Amazon over patented technology related to wireless networking and video playback. This was a result of the deal.

Various US carriers have been ordered to remove Huawei and ZTE (000063.SZ) equipment from their networks as a result of these sanctions, in response to concerns about data security.

Chinese telecom companies have been banned from entering the U.S. market due to concerns about data security, according to a report.

Aside from that, it has also prevented US companies from supplying with chips and other components, which has harmed Huawei’s smartphone business.

Even though there have been tensions between the two countries, Fan said that the patent licence deal shows “a clear indication that American and Chinese companies and companies from other regions are cooperating without limitations in terms of standardization and patent licensing.”

It was also announced that had signed a cross-licensing agreement with Vivo, a domestic manufacturer of smartphones, to cross-license patents covering communication technologies, including 5G. There is a similar patent agreement between Huawei and Chinese smartphone manufacturers Xiaomi (1810.HK) and Oppo (1809.HK).

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