- Huawei touted a new Wi-Fi patent licensing pact with HP last week but HP followed with a statement noting the deal actually marked the settlement of a “legal dispute” between the two companies
- The spat with HP came just days before Huawei reported mixed results for 1H 2026
- A high-profile U.S. trial involving Huawei is set to get underway next week
Huawei recently touted a new patent licensing pact with HP, calling it a “milestone agreement” that reflected “Huawei’s innovation capabilities and core technological strength.” HP, however, followed up with a statement noting the deal actually marked the settlement of a “legal dispute” between the two.
"Huawei is not a supplier to HP nor is HP a supplier to Huawei. HP is not incorporating any Huawei components or technology into HP products. The agreement is not a strategic partnership, nor a commercial alliance, nor a supply agreement, nor any other form of collaboration," said HP in the statement.
According to HP, Huawei had sued HP over the use of certain Wi-Fi patents and had been seeking to halt sales of devices which made use of that technology. HP said its only options were to license the technology or litigate the matter “with the risk of limiting our ability to serve our customers.” It chose to license.
"When standard-essential patent owners like Huawei sue companies with standards-compliant products, American companies often have no choice but to enter into licenses in exchange for the ability to continue serving customers," said HP.
Huawei revenue rose while profit dropped
HP's statement came in just days before Huawei reported mixed of results for 1H 2026. Revenue was up 9.6% but profit dropped 37% as costs and R&D spending rose. More specifically, Huawei said R&D spending rose 25.2% to 121.38 billion yuan (approximately $18 billion), equivalent to 25.9% of revenue, according to a Reuters article about the company's earnings.
Huawei is increasing spending on R&D to reduce reliance on third-party foreign suppliers and expand its own AI and chip capabilities. Like many industry vendors, the increasing cost of memory chips is also impacting Huawei's bottom line.
Huawei trial to begin Sept. 8
The U.S. trial against Huawei for charges of bank fraud, wire fraud, racketeering and stealing trade secrets that date back as far as 2018 is set to begin on Sept. 8 in Brooklyn, NY, with jury selection.