HP and Huawei signed an agreement on licensing Wi-Fi technologies, but do not reveal what they are working on

Agreement in the shadow of geopolitical tensions

The conclusion of the contract between the Californian HP and Shenzhen-based Huawei attracted a lot of attention because the Chinese technology giant has been on the so-called “Entity List” of the US Department of Commerce since 2019. Although American restrictions have made it much more difficult for Huawei to acquire American chips, software and other technologies, this deal proves that the company still has enormous influence outside of China, primarily through its intellectual property.

Both companies emphasized that this is a standard business arrangement. An HP spokesman told Reuters that this was purely a patent licensing agreement and downplayed its wider significance.

“This is not news and does not represent a broader strategic or commercial relationship, partnership or collaboration with Huawei,” HP said, noting that such licenses are common because manufacturers need access to patented technology to implement global standards, such as Wi-Fi.

On the other hand, Huawei emphasized in the press release that the agreement recognizes their technological strength.

“This significant agreement not only reflects the companies’ cooperation in the field of intellectual property licensing, but also recognizes Huawei’s innovation capabilities and core technological strength, as well as HP’s position as a global leader in computers and peripherals,” Huawei wrote.

It is important to note that by placing it on the “entity list” American companies are not completely prohibited from doing business with Huawei, but every transaction is placed under the strict supervision of the American authorities. This deal does not mean that HP received special treatment to circumvent American restrictions.

Resolution after a previous dispute

The current agreement did not emerge suddenly. Namely, HP and Huawei alreadyć were involved in a legal dispute over intellectual property related to Wi-Fi technology. In August 2025, Huawei sued HP at the Unified Patent Court in Europe, claiming that the American company was using their patents for the Wi-Fi 6 standard in its products without authorization. That dispute was resolved in November 2025 when HP joined Sisvel’s patent pool, gaining access to the disputed patents.

The new, direct agreement expands the cooperation to cover a much wider range of Wi-Fi patents, including those for Wi-Fi 7. Owners of so-called standard-essential patents (SEPs) are generally required to make their patents available under fair, reasonable and non-discriminatory (FRAND) terms to enable manufacturers have access to key technology. Cross-licensing agreements, like this latest one, are often seen as the most efficient and cost-effective way to open up technology. Instead of both companies paying full license fees to each other, HP gets access to Huawei’s rights and Huawei gets access to HP’s. It is not known whether one of the parties made an additional equalizing payment in order to equalize the value of the exchanged patents.

Huawei’s monetization strategy

For Huawei, this deal is another opportunity to turn years of investment in research and development into significant revenue. It has become the key strategy of the company despiteč American trade restrictions that have hit their hardware business hard. The company has aggressively expanded its patent licensing activities in recent years, concluding similar agreements with global giants such as Amazon, Ericsson, Nokia and Xiaomi.

Huawei claims to be one of the world’s leading holders of patents key to the Wi-Fi 6 and Wi-Fi 7 standards. Their current pricing for licensing the technology for consumer products is $0.50 per device for both Wi-Fi 6 and Wi-Fi 7.

In an update published in 2026, the company shared some impressive numbers.

“By the end of 2025, Huawei had a total of 165,000 active patents and signed more than 260 licensing and cross-licensing agreements with many of the world’s largest patent owners,” the announcement said.