HP Signs Multi-Year WiFi Patent Licensing Deal with Huawei — Despite US Blacklist
HP has signed a global, multi-year licensing agreement for certain WiFi patents owned by Huawei, the Chinese telecom giant that has been on a US trade blacklist since 2019. The deal covers standard-essential WiFi technology patents, and marks one of the most high-profile instances of an American company paying to use Huawei’s intellectual property since the sanctions were imposed. While HP downplays the agreement as routine and narrow in scope, the fact that it happened at all signals a quiet but significant shift in how the industry is navigating geopolitical pressure.
The announcement, made jointly by HP and Huawei on Wednesday, comes after a patent dispute that was resolved last fall. That dispute involved HP, Huawei, and several other companies, and resulted in an agreement that gave HP access to a pool of 2,000 patents related to wireless network connectivity. Huawei was one of the founding members of that pool, called Sisvel WiFi 6, which licenses standard-essential patents for WiFi 6 technology. The new global licensing deal extends that arrangement, covering “certain WiFi patents” from Huawei on a multi-year basis.
Why This Deal Matters Despite the US Blacklist
The US government added Huawei to its Entity List in 2019, effectively barring American companies from selling or transferring technology to the Chinese firm without a special license. That blacklist has severely limited Huawei’s ability to source components from US suppliers like Google, Qualcomm, and Intel. But it does not explicitly prohibit US companies from licensing patents from Huawei — and that’s exactly what HP is doing here.
The deal is a clear sign of adoption of Huawei’s technology outside China, even as the political climate remains hostile. Huawei has built one of the world’s largest patent portfolios, particularly in wireless communications, 5G, and WiFi standards. For any company that makes laptops, printers, or other connected devices, licensing those patents is almost unavoidable if they want to ship products that support modern WiFi standards. HP’s move suggests that for some US companies, practical engineering needs outweigh political risk.
How the Patent Dispute Forced HP’s Hand
HP’s own statements make it clear that this wasn’t a voluntary partnership. “HP was forced to either license or litigate with the risk of limiting our ability to serve our customers,” the company said in a statement. The deal came after Huawei sued HP over the use of its WiFi patents, and HP concluded that fighting the case in court could have disrupted its supply chain or product launches.
This is a common pattern in the tech industry: patent holders with essential intellectual property often sue to enforce licensing, and defendants typically settle by paying royalties. What makes this case unusual is the geopolitical backdrop. Huawei is still effectively banned from doing business with US suppliers, but it can still sue US companies for patent infringement — and those companies can settle without violating sanctions.
“This is a standard-essential patent license covering Wi‑Fi technology — something used broadly across the industry and routine for companies whose products connect to Wi‑Fi. It is not new, does not represent a broader strategic or commercial relationship, partnership, or collaboration with Huawei.” — HP statement
What This Means for the Tech Industry
The HP-Huawei deal could set a precedent for other US companies that rely on WiFi, 5G, or other wireless standards. Huawei holds thousands of essential patents, and many American firms have been quietly licensing them for years through patent pools like Sisvel. But the political optics of a direct licensing deal between a US company and a blacklisted Chinese firm are different.
The deal also highlights the growing importance of WiFi 6 and WiFi 7 standards in consumer electronics. As more devices — laptops, printers, gaming consoles, smart home gadgets — require high-speed wireless connectivity, patent holders like Huawei become unavoidable partners, even if trade restrictions exist. The US government has not yet moved to restrict patent licensing, which is seen as a form of intellectual property protection rather than technology transfer.
For HP, the deal removes legal uncertainty around its WiFi products, which is critical as it prepares to report earnings. The company is scheduled to release its quarterly financial results on Thursday. Licensing costs are likely factored into the deal, but HP has not disclosed financial terms.
The Skeptical View: A Routine Licensing Agreement?
HP’s insistence that this is “not a broader strategic or commercial relationship” is worth taking seriously. The company is not buying Huawei’s chips, using its software, or partnering on product development. It’s simply paying for the right to use patented technology that is already integrated into industry standards. Companies do this all the time with patent holders like Qualcomm, Nokia, and Ericsson.
Still, the timing is notable. The deal was announced just days before HP’s earnings, and it follows a broader trend of US companies quietly re-engaging with Huawei on intellectual property matters. For example, in 2023, Huawei reached a similar patent licensing deal with a major US automaker (details not disclosed). The Trump-era blacklist remains in place, but the Biden administration has not cracked down on patent licensing.
The real question is whether this deal opens the door for broader cooperation. If HP can license Huawei’s patents without political backlash, other US companies — especially those in computing, networking, and IoT — may feel emboldened to do the same. But any move toward a more commercial relationship would likely trigger scrutiny from the US Commerce Department.
What’s Next for HP and Huawei
HP’s earnings report on Thursday will be the immediate next milestone. Investors will be watching for any mention of the licensing costs and how the deal affects the company’s bottom line. For Huawei, the deal is a validation of its patent portfolio and a source of recurring revenue — something the company desperately needs as its smartphone and telecom equipment businesses struggle under sanctions.
The broader implication is that the US blacklist is not a complete barrier to business between American companies and Huawei. It’s a messy, uneven wall with gates for patents, open-source software, and some legacy agreements. The HP-Huawei WiFi licensing deal is a reminder that in the global tech industry, standards and patents often transcend politics — even when the politics are as charged as they are between the US and China.
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