EXHIBIT 1 TO HUAWEI’S MOTION TO SEAL 

(JX-022) 

PUBLIC REDACTED VERSION 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 1 of 31
000097 

No. 0000467 4 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

h..QNTRAC:T HF.TWEF.N QUALCOMM INCORPOR.-\TF.D A.ND HUAWF.l 

JECHNOLOGiT!S CO. LTD. FOR THE UCENSE OF CERT1\JN rEC:H1"0LOGY 

FOR THE ?vfANUFACTUR!NG A:--.1PSALE OF crnr AIN CDlvlA SUBSCRIBER UNITS 

Thh Contract for th1: Lic:t·n:-to> uf Certain Tech1wh.1t;y for :he M,mnfach1ring aiid 

Sale of C1:~rtilin CDMA Sub::criber Uni!:- (Lh~ "C:vntr<H.:f') is cntt>rnd into on Muv 

~ :i()(l?> by and betwe;;n QUALCOMM h1l'l1rpl•r"ted. ,1 Dchiw;we corpor;,lk1;1 

("QUALCOM\'\'f"), and 1iiuwc1 Tcchnoh>gic..-; Cn. I.id., a Ch.inc.:,e «omp;iny. wilh 

r<!S.pt...-ct tn the following facts:: 

RECITALS 

W1--lEREA5, QUALCO!vTh·l has devel0p1~d cert~in propriet.1ry Code Division 

:tv!ultiple Access tedmology which may be useful m providing greater capacity 

i!nd improved quality and reliabilitv comp?.red to other Wireles& telephone 

technologies; 

WHEREAS, QUALCOJ\11'.·t and Chin<J United 'lelecommunications Corporation 

("Unicom") have tmkred into that certain Framework Agreement for CDlv!A 

Intellectual Property dated January 28, 2000 (the ''Framework Agreemenf') 

which provid~~s a framework for the licensing of certain domest1c Chine...;e 

CDMA equipment manufacturers designated by the Ministry of Infurmatfon 

Industries (''MII") in consideration for U11icom's agrt:'ement to deplo~· a 

conu11ercial CDMA wireless nell.vork with n Cilpi!C:ity uf 10 million sub~cribt>r.;;; 

vVHEREAS, lhe MI1 and QUALCOt-.1M have entered into lhat certain 

Memorandtm1 of Understanding By and Between The ;\-finistry of Information 

!ndmtry of the People's Republic of China and QUALCOlvLM Incorporated On 

Their Cooperntion In CDlv1A datt>d NQvember 29, 2000 whereby, f!mune; l'lher 

things, U1e MJI i;upported the Franwwork Agreement; 

\·llHF.REAS, QUALCO:M .. 1\1 wishes lo promote CD.~·.'lA tedmology and the 

development of CD!\1..6>. net\vorks in Chi.na, while LICENSEE is. a leading Chinese 

manufacturer in CD11.A systems teclmology; and 

\o\'1-fEREAS, LICENSEE desires to obtnin a commercial license of QUALCO!vL\1's 

Intellectual Property to manufachu-e and ~ell Subseriber UnHs, and 

QUALCOMM, in relinnce upon Unicorn's agreement mentioned above, desires 

to gr;int such license in accordance with the terms and conditions set forth in this 

Contract. 

(!LALCOMM·liUAW!ll CO.\ffiDEi'.liAI. Ql..iALCOMM PROPRll:I ARY 

~(>ft~ 

CONFIDENTIAL FTC-HUAWEl-0000704 

CX1018-001 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 2 of 31
000097 

No. 00004875 

AGREEME:-.lT 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

NOW THEREFORE, the parties hereby agre~ a" tollows: 

1. HEADINGS AND DEFlN!TIONS. 

All headings used in this Contract are inserted for conV!mience only and 

arc: not intended lo affect the meaning or interpretation oi this Contract ~r any 

dau~t~. Rderence to "third p;:;rty or third parti~s" ;;.hall not mean either Party. 

l·or th<" purpose of this Contract, the fo])o·wing ddmHions apply: 

"Affiliates" rne;m~, as to any company, pai:tner~hip <Jr business combination 

(indudmg QUALCO.l\£11 and LICENSEE), <my pn:~em or future Parent of s1.1ch 

company, partnership or business combination and any present or fuiure 

5ul:n;idiary of sud1 company, partnership or bu~ini;,;s n>mbination and/or it." 

Parent, but only ior so long as the Parent remain.<> the.! Parnnt of such company, 

partnership or business combination and the Subsidi-ry remains a Subsidiaiy of 

.:,uch r:1.1mprmy, pmtnernhip llf bminess combination andior ils Parent. The term 

"Pan:.nt" of " company, partnership l)f business combination means any 

corporation or other legal entity th<1t owns or controls. directly or indirectly (i) 

more than 50% of I.he share.:: or other securilies of sudt company, partnership or 

bu:-iness combination entitled to vote for elt!ction of din.'dOrs (OT oth~·r managing 

authority) of such company. partnership or bu!'incss C<'mbination or {ii) if such 

Party docs not have m.:.l:standing . .,hums or securitie'., more than 50% of t11e 

l!guity intcrnst in such company, partnc.m;hip or bu~inf!&S combinstion, but only 

ior so long at; buch ownership or control l•xi~ts in (i) or (ii) above. The term 

"Subsidiary" of a company, partnership or bu~int·~s combination means any 

corporation or other legal entity (i) the majority (mon:: than 50%) of whosl'? shares 

Lir other !:lecu.rlliei; entiUed lo Yote for election uf directors (or other managing 

authorirv) is now· or hereafter owned or controlled by such company, 

partnership or business combination either direct!)' or indirectly or (ii) whidl 

does not have outstanding shares or securities but tht! majority (more than 50%) 

of the equity inlerest in whid< is now or hereafter (>wrwd or controlled by such 

company, partnership or business c:ombination l!ither directly or indirectly, but 

only for so long as such owrn.:rBhip or control t;XL~t.'- in (i) or (il) above. 

"BRF.W" mean5 QUALC'OMJ\'J's software plntfonr1 for mobile devices called Binary 

Run-time Environment for Wirele.ss and any subsequent versions thereof that 

Ql.iALCOMJvI make~ a\•ailahlc to LICENSEE. 

"CDMA" means code division multiple access technology. 

T.Dl\!LA ASICs" mea.rtS QUALCOM11's mobile stahon modem (MSM) CDMA 

application specific integrated circuit, and any revision, generation, modification 

QUALCOM~!-HUAWEl CONFJDESTLo\L 2 QUALCO:v!M l'ROPRIETARY 

~ c.r-1,., 

CONFIDENTIAL FTC-HUAWEl-0000705 

CX1018-002 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 3 of 31
000097 

No. 00004876 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTJAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

Dr intl>graUon to or of tlie MS/..•! purchased by LICENSEE irom QUALCO:t-.11->1, or 

any application specific integrated circuits with similar functionality. 

''CD1vlili Standi!rd" includes only (i) the Telecomrnunicalions Industrv 

Association's ("T!A's"'l IS-95 series of air interface st..mdards; (ii) other CDJvfA 

~t;mdarcls which specify the same Physical Layer as lS-':15.: and (iii) the CmvIA 

2000 third generntion air interiace standard including ix RTT, lx R"IT EV anci 3,_ 

RTT. 

"China License" meall.5 the licrngl.! granted by QI;ALCOMM to LICENSEE to 

milke. use, st>ll, and ciffer to sell in China Subscriber Units for LL'>e only in China. 

· Cl!.ln1m.• ~·fanufilthm1r" means a company o:r other legal entil)' (i) nrganized and 

l!·dsting Uinlcr Lht:- law!- of <.;hm4, (ii) thnt has reci:f\•ed all nece:;sary approval$, if 

;:nv. from t·hC' Chin""~"!! gc.vernm.:?nl to manufacture nnd sell Subscriber Unit~ M 

~•1b•i,;semh1Jes nf Subs'Criber Units bi1t excluding (a) any corporation, joint 

•. t:nlure, p111·tner5hip ,~, 1.)llwr bui<iness entity in which more than 49%· of the 

equity 1s owned or conln•lll.~d directly c>r indirectly by entities and/or persons 

that 11rC' nol citizen_.; or legal pers1,.1n:; ~,f Chim1, (b) any wrporation, joint Ycnhm.'. 

pcrlner~hip or other busil1e~''- entity in which any minority partner or minority 

P'1Uily ow11C'r or any Affiliate of :::uch partner or equily owm:r •1t any tinie durmg 

the tern\ of tlm; Contrm::t holds a license under any portion of QUALCOMM's 

Tntdlc.:tual I'roperl}· (C'xcepl for a licmse granted by QUALCOMM pltrStlimt IC' 

the Fra111ework Agr.:eromt by 1md b"l:l'\'een QUALCO:'vll\·t and Unicom) and (c) 

any cnrporaUon, joint venture. partnership or <>ther bu:;m.:;;s entity in which any 

non-Chinese p;irtne1· or n,m-Chlnese eq\1ity owner or any non-Chim.>se Affiliate 

of ill1V partner or equity owner has atm11al revenue!' (•f more than five hundred 

niillim1 Lhiited Stales dt,11<.rs (§;5(1(1,000,000 U.S.) from the manufacltU'e and/Or 

,..ale (,.>f windt'.IS:!: 511bscriber t .. rminals, wireless te.lc.-i:,1mm\micntions l\clwork 

(!4uipnieul or integrawd circuit$, subasst'TTlblies or modules for incorporntinn in 

such terminal~ M eouipmcnl at am.• lime dtJTing the term of U1is Contract. tmll!s;:. 

-.uch non- Chinrse partner or min-ChinQse 1~trity l'Wner or n<m-Cltines"' Affilialf 

de.irly give:; up and recc1n!S none of the benefits re~ulting from this Contracl or 

ua!es.<> such lice1\5e holder described in dau!le (b) above or such non-Ch.mese 

partner or non·\nint>.<;e equity owne1· or non-:(:hineS<.' 1\ fliliate de.scribed in 

dau..,e (c) abow ha~ acquired not more than 20% of ltie \'oting stock of such 

company or tmlily thr~lugh pun:hi'lses rnade on a publk stock cxchllngc and dol!>" 

1wt exercise management .::ontrol of such cc•mpany 0r enlity. 

"Cummercial Software Fee" means 

"Commercially Necessary IPR" meiln..'1 those lnteliectual Properly Rights whiLh 

(i) the! licensing Party or its Affiliates has lhe right to license to the other Party 

without payment of royaltic:< or any other consirlcration to any third party, (ii) 

QuALC01'1M·HllAW(;I C01'11DE~TIAL 3 QUALCOMM PIWl'Rlr.TARY 

,,} ~(.. 

CONFIDENTIAL FTC-HUAWEl-0000706 

CX1018-003 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 4 of 31
000097 

HUAWEI TECHNOLOGIES co:. LTD. 

CONFIDENTIAL - 15 U.S.C. § 57b-2 

FTC File No. 141-0199 

an:· not <·sscntial lD the manufacture, use or sale of Subscriber Unito and/or 

Cornpnn.~1tl> which comply wlth !he !>l)t::dfication5 of the crnv!A Standard <1nd 

l1ii) pnwiJe Subscrll:>er L'n.ii.s. and/or Comp<.mcnN. \viU1a competitive <idnmtage 

\e.c; .. coi::t, b\d·l'ime c1r qu.:ility adv;mt«gcis) or which add to Sttb.\;crih1~r Unit~ or 

G:m1ponenti, a 1eature or \lthia charnct~·ristic which ma} be re11srrnably required 

br tltt.' m,;rkd pl<:i.-e; l•ur the term Commercially Neces.<:ary IPR does not includ<? 

am· tri.lde nanw,. trademark, 5L'rvice maxk, or similar sv·mbols, abbreviation. 

c:o;1tmct1on~ or simulations identifying- the licensing Pa"rty and its Afiillat~·:c 

(c~>..co::p! as set forlh in Sechon 8, if the licensing Parlv is QL'.ALC01v!1v1). 

"Cornpnnent$" meiln5 application specific int€):,•1«1led circuit~ (AS1Cs), electronic 

de\-ICes, intl'grated cLrcuils. multi-chip modules, including firmware tlwreon. 

iind:'ur famili.-~ of de\·ices for use in products for wirelt~.~s teleconmumicallcm 

applications ;md Jff('ll1j:'anying softwcire. 

"F.ffecth•c! Date" means the date this Contract is ~igned by the Parlies as set forth 

in U1e fm;t p;nagrnph h~Il:'of. 

''lndnded Comnwrcially Necessary IPR" mean:< (1) with respect lo the 

ln!dl~l·tu;il Pmperty Riy.hts belng licunsed by Ql'ALCO?o.·Hvf, (a) all claims of ;my 

patents. (fon·i~;n and dotmAic) which ;ire now issued or which ilTC applfrd for cm 

or b.::fon· :\pril 1~1, 20~1-! and which constitute Commerdallv Nec:essarv JPl~ and 

tbi a!i' wpyrlt:hlo;. tradi; secret$, know·how, tec:hni.c;.=J ~s!'istance ~nd orh1:~ mtclfoctu;il pmp11rl)" right!< whid1 l'Onstitnte Comm~n:fally ~cc~~:·mry IPR ,:id 

whirh m<iy be hlmi!>hcd hy QUALCOlvL\1 10 ITCENSEE punmunl to th!;.· 

Contu;cl cmd (2) with rl•spect to the intdlectii,;! Pniperty Right~ being hcen!'c'd 

b:-' L!CF.NSEE, all cl;mns ot anr patent> (fon:'ign and domestic) whid1 ure DO\\' 

b<;ued or which are app1ied for on or bdore April 19, 20i)4 and whid1 <onstitut<: 

Cmrnnerrially Necessary TPR. 

"lntelleclucil Property Rights" me<m> patents, copyrights, !racll' :oecrl!ts, kn0\ .. --

how mid olhrr intellectual prop"rty rights. 

'1JCENSEU" memlS llu<iwei Technologic.s Co_ Ltd . ., a Chinese romp<my. 

"UCENSEF.'s lnkllt::ctual Properly" meanB LICENSEF:s Ti?chnically NecessMy 

!PR and LTCENSEE'!i Included Commercially Nece.<>sary IPR. 

'Net Selling Price", with respect to each Subscriber Unit Sold by LICENSEE, 

means one ol the followmg, whichever is applirnble: 

«•) When ~old by U<:;ENSEH in ;m arm~s length rra?\Si'll.iion to a l'mcha:>~:­

(<1 "Purchai;t•r .. bein& a person or entity lhilt uoes not control LIC'ENSfE. i;: nut 

contr1.1!1cd bv L!CF.NSEE or i5 not under common control with LICENSEE; und 

th.., tenn "<~ntrol" for the abov(? purposes shi=Jl mean the d.irerl or indin?ct 

ownership or con!Tol c·f more than a lwimly-Cive perc•?t:t (25c,'o) intcre!>ll, llw Nel 

QCAT .("0~1~1-1 ll: ,\WEI (.'()'I rm£NTL.\ L 4 

• • ' • _ • - - ~--- • ... • - -:~---:; "~~ - - t ~ : • ~ - ~ --~ - • ; • • ~ J ::r 

No. 00004877 

CONFIDENTIAL 

FTC-HUAWEl-0000707 

CX1018~004 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 5 of 31
000097 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

St!lling Price f'.hall be th1~ Selling Price ch11rgcd by LICENSEE for Subscriber Unil' 

Sold to such Purchaser; 

(b) Wh1..·n Sold by LICENSEE lo a person or entity that is not a Purchaser 

(a ''Related Buyer") or in " transaction lhat is not an arm's length transaction, the 

Net Selling Price shall b<> the Selling Price charged by the final vendce Related 

Buyer upon resale by the final vendee Related Buyer of Subscriber Units m an 

arm's length Lransaction to a Purd1aser (if such arm's lmgth transaction occurs1 

but in no event less than Lhe Selling Price that would bP. realized in a sile tn a 

Purchaser transacting at arm's length; or 

\c) When retained by UCENSI!E for ils own use or lease, or when Sold by 

LICENSEE to a Rel<1ted Bt1ver for the Related Bu~·er's own use or lease, the Ne\ 

5elling P!'ice shall be thE' Sellmg Price that wottld be realized in o s;:ile lo <i 

Purchaser lrans;icting at am1s length. 

"Pilrty" \ndi\'idl1t1lly means QUALCO!vrM or UCE;-JSEE <1nd the term "Parties" 

colledivdy meanf. QUALCOMM and LICENSEE. 

''Physical Layer" shall have the same meaning as giv~:n in the TTA's 15·95 digitill 

cellular standard. 

"QUALCOMM'!'; lntcllecl11al Property" means QUALCOMM's Technically 

l\iecesselry JPR and QUALCOMM's Tnclud~·d Commercially Necessary IJ?R and, 

only when used '"ith respect to Subscriber Units inrnrpor.iting a CDM.r\ ASlC 

purchased from QUALCO\·P.v!, certain third party patents of Telefonaktiebolaget 

L :\'I Ericsson and Ericsson, Inc., Philips F.lectrnnic.s N.V. and lnterDigital 

T.-clmology Corporation lo the extent and so long as QUALCOMM has the right 

to ~ublicense sud1 third party patents to puTchasers of CDMA ASlC~ from 

QUALCOMM when such CD1v1A ASICs are incorpL>rntcd into Subscriber Units. 

"Selling Price" means the gn>ss selling prke and/or value of oll1er considerarmn 

chil.rged by the LICENSEE or its final vcndee Related Buyer for each Stibscriber 

Unit in the form in which it is Sold (whether or not assembled and •Nithout 

excluding therefrom any Components (except as explicitly set forth below) ur 

subassemblies thereof \\"hich are Included with such Sub,;cribcr Unit) d~dui:ti11g 

thcrefrom only Lhe following items incurred upon the Sale and delivery of such 

Subscriber Urut to the extE>nt actually il\cluded and paid in the Sale price of each 

such Subscriber Unit and properly documented by the LICENSEE {as shown, for 

example, in a sales contract or invoice reflecting arm's length pricing): (i) packmg 

costs (including solcly the cost of packaging materials, direct labor engaged in 

packing activilies and package design), (ii) costs of insurance and transportation, 

(iii) governm(mt fo~·5, import, export, exd&e, sales and value added taxes and 

custom d\lnt·?S kvicd or imposed direc::tly upon the Sale of such Subscriber Unit 

iind otheT t<1xes or charges based on Sules price 'vhen included in th~- tv0s~ 

Ql'.ALC'OMM-lllJA \\'El CONnl>E.\'f'l."L 5 QUALCOMM PROJ>RlETM.) 

~ Gl'-(.... 

TFZ r •; .".x "'-'trtttf(' . 

No. 00004676 

CONFIDENTIAL FTC-HUAWEl-0000708 

CX1018-005 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 6 of 31
000097 

HUAWEJ TECHNOLOGIES CO., LTD. 

CONFIDENTIAL -15 U.S.C. § 57b-2 

FTC File No. 141-0199 

~elling price for each such Subscriber Unit, and (iv) cu~tomary tl".'1de discounts 

and reh1ms actually credited ;incl reiunded. l.n addition, solely for Subscriber 

l:nits made by LTCEI...:SEE in Chma and Sold bv LICENSEE in China solelv for 

USt' in Chinn: LICENSEE may d('ducl, upon, the ~ale and d~:livery of ·5\lch 

Sub~criber Units, the !'OB pI"kc c)f CDMA ASlCs pllrchased from QUALCO~l~l 

and inmrptiratcd into stich 5uhscribE'r Units to the extent actually included ;md 

p:iid in the Sale price of <.>at;h such Subl'Criber Unil and properly doaunented by 

LICENSEE (a:. i.:hown, for examplP. in ,1 sales rontract or invoice reflecting arm's 

lens;th pridng). 1f Sub$CT:hN Unit's are Sold in combination with other separilh' 

a11d dLc;linct product!' or ~ervicc:; (for exan;ple, ii ~econd battery or ;:i charger, " 

l11:r.d-::\•l, il ~wp.nate op:ion:d altachnamt such as an lvfP3 player or PDA 

C<.>1•111~clahle by the 1md-nse1 to lhe Subscriber Unit \'ia it cable; hereafter thl' 

"Other Prrnh1~c\s·'}. <ino r;•" ided that the Other Product,; do not alone nr i': 

Climbin;ition with lht' Su!wi.:ril,ei· tJnil implement QUALCOlvtM's lntelledual 

f'r<1perly, the St'lling Prh:·,, i1'r ,_.u.;-11 Si1bscriher Unit:; (the "Combined SubsnibET 

Units") $hall be lhe •wer;i~c S<:llint~ Price which LICENSEE chargf!d to Pun:hasers 

f1;•r $ubscribcr Unit!' (of rhe .o;;1me> ~ir $uhslantially U1e ~ame quality and quantity) 

th11t '''ere Sold without bdng combined with other uroducts tlT services in the 

s-une quarter or in thE' most n;cent previous C<Jlcndar ~iu<:rter in which Sales were 

made. If no such Subscriber lJnits have been Sold to a Purchaser in tl1e same or 

any previou!'- calendar quarter to permit Lh<· fair dete:r:11Lriiltir-.n of an arm's le11glh 

pric.e of the Combined Subscriber Uni!, !lum the St!ilin;; Prki~ for such Coml.iined 

Subscriber Unit :-;hall be the Selling Price (nar~ed l1y LICENSEE for such 

Combined Subscriber l;nits les.,. onl}' tho::e tictmil C<..•~\$ 1·1f the Other Products 

that UCENSEF can clearly and convincingly pro1·<> were not part of l11e 

comideration aJlocated tu the- Sale of the Subscriber Unit being combined with 

other products or s~:rvices, but in no cas.e Je:;s than the fair market value of lne 

Subscriber Unit. For the piirpose of this definition, "Sold in combination wiU1··' 

shall mean that h\'U ur more scpar;itc and distinct prnducb pre sold togethl'r irn 

;.i single prire pro\ ided that such &eparatl' and dis Linet products are not 

physically integrated inl•:i a 'ingl£! product. \·\'hen Subi;niber Units are Snlcl 

under a comprehensive ~upply agreement and are delivered in periodic 

installments which are not separate!~· invoiced, thea lhe total Selling Price of 2il 

Subscriber Units Sold 1.lnder su(h comprchen:c;ive supply agreement shall be 

fairly apportioned tu t:!dd1 such installmenl bnm.•d on the: relative i\!110t11Ho. and 

values of lhe Subscriber Unitce; comprisi11g sud1 installments. 

"Software" means the obiecl code and source code for DMSS, as more iulhdeffribed in Exhibit A. 

"Sole.!," "Srilc," ''Seu·· means put into use, sold, le.a5cd or otherwise transferred 

and a salt! sha!J he deemed to h,1ve ocni.rred upon putting into use, 5hipment or 

invoicing, ··whkhcver shall first ocwr. 

QUALC:OMM-HUAWEJ co.-:nD!·.'fl l.·\l 6 Ql:ALCOMM PllOPRlET.\J\Y 

~Gitt_,.. 

- - . -· ___ ..,..._ -· ' . -•·11enas No. 00004879 

CONFIDENTIAL FTC-HUAWEl-0000709 

CX1018-006 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 7 of 31
000097 

No. 00004880 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

"Subscriber Unit" means a complete CDMA and/or multi-mode CD1'·1A 

le1eph1">ne.. including but not limited to mobile, transportable and portable 

Lelephones. whid1 incorporates all or any part of QUALCOMM's Tntellcclual 

Property n.nd can be u:;ed. wHhaul any additional equipment or componento 

b!ling attached thereto. to initial-t: and/or receive \oVirelc.Gs teleconununications 

rrat1-'i!lU$Sions inaccordi'ln.;v with 11 CDMA Standard. 

"Technically NL:eessary ffR' me<ms all claim:; of any patent'i (foreign and 

dumestic) issued on, bdorc or after the Effocliw: Dal~ which (i) Lhe 1ict'nsir1K 

Party or Hs Affiliales ha;. the right tu licen~; lo the nther Party without paymer~ 

of rnyalties nr any other comideration lo ;my third party, ,md (ii) h; ess~itfal to 

the manufacture, U5E' m sale of a usabli:- Subscrib~ IJnit anctlor C~imi~onent.~ 

which comp Ii et> with the specifications of the CD!vlA Shl.ndard (i.e., mw:;t b" 

infrin~ed upon in order lo n1mply with lhe CDMA Standard). 

"Wireless" ;md "Wtrel<'-% Applications" m(!ans ti•rrestrial-based. land mobik, 

wireless tclecornnuinications applkntivns, includ5ng but not limited to cellular, 

personal r(Jm1m.utkal:iNl5 :;en·ices (PCS). wJreless !oral loop and wireless PABX 

,1pplkalic.ms \vhich are compliant with or sul.,s!antiaUy based upon a CDMA 

St;mdar.:t Notwith~!andin.g the fonJgoing, lhe tee~ "Wireless" and/or 

"\Vireless Application~" shall not incltKk: Sl\lf:llile applications (defined as any 

applicnlion which utilizes a direct connc:dion bl."Lween the Subscriber Unit and 

;my satellite). 

2. TERM OF CONTRACT. 

This Contract shall com111encc upon the Effective Date and, unle~~ 

othcn-.'ise tem1inated or canceled as provided herein, shall continue in full fore~' 

and effect for ten (10) years after the Effective Date. By nolic:e given lo 

QUALC0Jv1M on or before the tenth anniversary of the Effective Date. 

LICENSEE may renew l1m CLontracl for an additionai ten (10) year term on the 

~ame terms and conditions or l'n any modified terms and conditions Lo which the 

Parties mutually ;igree- Upon LICENSEE':; \vrittcn request made \\lithin six (6) 

months before the tenth anniversary of the Effecth-e Date, the Parties shall 

promptly meeL and discuss in good faith whether any terms or conditions of this 

Contract should be modified in connection with the renewal tu:~i:t:of. 

LICENSEE shall obtam all Chinese government nppmvals required Iv 

enter into and perform this Contract in writing and in a form satisfactory to 

QUALCONIM, including but not lhniled to approvals from the Mfni~tr)· of 

Commerce (MOC) and the Stnte Adnii11i~trati9n of Foreign Exchange (SAFE). 

LICENSEE sh;ill promptly notify QUALCOMM wht'll it has received all such 

approvals and shall provide copies to QUALCOM!vL 1f all such .1ppnwals are 

not obtained within nine (9) months after the Effective Date, either Party may 

terminate this Contr.;ct upon notice to the-• other Party- In addition, LICENSEE 

QUALCOMM-HllAWEI COl>FIDE"l 1~1. 7 QUALCOMM rJlOPRltl ,;RY 

.k. &P-(., 

sarnnm?F77errs t?E· ~; -t''?%¥YsWW7157 - ::: .... --~ 

CONFIDENTIAL 

FTC-HUAWEl-0000710 

CX1018-007 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 8 of 31
000097 

No. 00004881 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL -15 U.S.C. § 57b-2 

FTC File No. 141-0199 

shall m<1intain in good standing all sud1 approvals once ubtained and shall 

promptly obtain any renewals and any new or additional ilpprovals that may be 

reqmred in the fulure in. order for UCENSEE to fully perform its obligahon!o 

under thi$ Contract. AU,-;,d1ed hereto ati Exhibit B is a true and correct copy of 

LICENSEE's import and export license. If, a5 a result of the refusal of any of the 

Chinese government authorities tcferenced above to approve' any prnv1sion 

hereunder the necessan' appTO\'ab for this Cunlract cannot be ubtainecl, the 

l'Mties shall negotiate in good faith to a!Tl\!nd the prm·ision in question so a~ to 

prncure such approvals. . 

3. FOR T.TCENSE I1' Cl lL "JA. 

QUALCrnv1lvl agrees t11at LICENSE!:: 

; -provided, 

however, Lhat QUALCO!o.'1M shall be prnrntted to ch<1•g~! service fees for 

pvviding Lo LICENSEE any services, tedumlogy or other items requested by 

LlCFN'SEE other tl1an.those induded in QUALCOr.L\.f's Tntellechial Property. · 

·L DOCUMENT A 110:\J AND OTHER DELIVERABLES; TECHNICAL 

ASSISTANCE. 

4.1 Rt'~!:esentations and .. Limitation~ on Furnished fnformatig.n 

DL'ALC01vfM shall use reasonable commercial effort~ to \·erify the ilCcw·acy of 

,~iv documentation, Software or information thiit u-un l;e furnished· bv 

Q(IAl,COM1"'lhewmdl!r. QUALCOMM shall defend and. indernnify LJCF..:-\SEE 

,,~~i1wl ;my dnim that the clornmenlation, Softwarf' nr informatim1 provided l'y 

QUALC<Jtl·1l\'l ht?reunder infriltges the trade secret;; or <:opyright> of any third 

party providl~d 11\ilt LiCENSEE gives QUALCOM~f pwmpt notice of any $uc!~ 

daim ~md complete ccmtn>l of foe defense lhcrt:of. Except as expressly i>et forth 

ilbovc. QLJALCO!vfM ~h•ill nol b<' 1i<1bll~ foir dcimcigr.; arising out of N re.~ulUng 

from anything made a\'ai.lable twrcunder C\!' the USl' tht:reo{ nor lw liable 10 

UCENSUU for c:on~cque_nUaL special <1r inL-idental damages Lmd.,r ;i1i:1· 

,·ircumslatic«:>s. QUALC01·11·1 shall' have no re:::pon~ibilit}' for lhc flhility of 

LICENSEE to uoi;! t"udl information, documentation or software, the quality or 

performance of the products. produced thPrPfrom hv LICENSEE, or the clai.1115 of 

third parties arising frnrn the use of such products or infonnation. 

1!.2 1edmk<1l M~tin~s and Assistance. FM a period oi Lwo (2) year;. 

j,-.nowing the Effective Date of this Contract-. upon written reqnti'"l irom 

LTCTNSEE wiilu-ei!siJnable advam:~~ wril\en tll1tln'. QUALCOM.M shall pm;-idc 

LlCENSEE wllh up t0 one hundred (100) hourt> of technical assista.nce <rnd one 

hmdrt:d (WO) l1ours 1'f training ill QUALCOMYl's standard CDMA trainin~ 

cnurses to be held at .:i m;;:..inwm of Utree loi:ahc•n.."' ill no clmrge tu. 1...ICENSf:E. 

U pr•n LTCENSEE's rcque.>t and nt QUALCOMi'vl\• disi::retion. QUALCOlvfkf may 

pr1wide LTCENSEE with additional hours of le·:hni.:;1l :1;;sistance and/or lr;immg 

QlJALCOMM-Hl!AW£l <.·o:,'f'IDE-; rtt\l 8 QUALCOMM l'l(OPklET·\R) 

~ 

/~ J-" 

CONFIDENTIAL FTC-HUAWEl-0000711 

CX1018-008 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 9 of 31
000097 

- - No. 00004882 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 571>-2 

FTC File No. 141-0199 

cil QUALC01vlM's then standard rales, including but not limited to 

reimbur$t'ment for l:TaVE!I and related expenses, providc;d that UCENSEE agree.<. 

t\1 the rates to be cfoirged. In such event, QUALCOM~'I shall be permiUed to 

11n-r)ice LICENSEE for such charges on a bi-weekly basis. Payment by 

LICENSEE wilJ1 resp~t to su.,..h invoices shall be made within thirty (30) b11siness 

days after LICENSEE'~ receipt of the invoice. This Crn1tract Gh<ill nol reqttire 

QUALCOMM to provide <my tedmic;al <issistance r£:lating to thl' design of 

Ct)mponenls or any tedmical assistance not related to Subscnb~!r Units. 

5. QUALCOM!d LICENSE. 

5. l Granl._of License From OUALCO~·L\·I. Subject to the term."> and 

c0nd1tions of this Contract. including but not limited to timely payment of the 

royalti<:>s sd forth herein, QUALCOMM hereby grants to LICENSEE il 

worklwidP, nontran.<;for,1ble and non-exclusive Jk,~n!;e (without the right to 

sublicense except as Othffwise provided in Section 5.1.1.) to use QUALCO~-l!vl's 

lnlellectuill Property ~olely for Wireless Applic<itions {a) t\1 make?. (and have 

Subscriber Units or subassemblies for Subscriber Units !Thldc by one or more 

Chine:;e Manufacturers) and import, use, sell, lease or otherwiSt! tlispnse of 

Subscriber Units, (b) to make (and have made) Cornpon<mt~ thot have been 

t~xclusively designed by LICENSEE (wh.icl1 desip1 is O\\'ned and uM:d exclusively 

by LICENSEE) and (cl to import, use, sell, lease or othen~·i;;e dbpose of .such 

Compnnents; provided. however, that such Components may only he usl!.d, sold, 

leased or otherwise disposed c•f by LICENSEE if lhey are included and used, 

;;old, leased or othmwise disposed ~1f by LICENSEE as part of and ·within 

complete S\ibscriber Units of LICENSEE (or as replacement parts for Subscritier 

Units previously sold by LICENSEE). No other. further or different license is 

hereby gronted or implied. A representative list of QUALCOMM's bsued 

0-Unese patents and published Chinese patent applic,1tions that are lkensl'd 

undc~r this Contract is attached hereto as Exhibit C. 

5.1.1 Rif;ht To Sublicert,').e Affiliates. Upon notice to QUALCONJM 

and QUALCOlvfM's written approval, which approval shall not be wueasonabl;.· 

withheld, LICENSEE shall have the right to grant sublicenses t1nly lo Affih;,ites of 

LICENSEE Lhnt are Chinese 1vJanufocturers with respect to any rights conferred 

upon LICENSEE under this Contract; provided, howev~r, that any such 

sublicense shall be subject in all re~pect<> to the restrictions, exceptions, royalty 

and other payment obligah(ms, report~, termination provisions, and other 

provisions contained in this Contract. LICENSEE shall also pay or cause its 

sublicensed Affiliate~ to pay the same royalties on all Subscriber Units Sold by il~ 

sublicensed Affiliates as if LTCENSEE had Sold stKh 5Ltbscriber Units. 

LICENSEE shall report to QUALCOMM the Net Selling Price for all Subscriber 

l.lnit:: ~old by each such Affiliate. LTCENSEE ~hall be responsible and liable to 

QUALC0Mh1 in the event that any of its sublicen.sed Affiliates fails under any 

such sublicen~e to honor ilnd comply with all obligations of UCENSEE ao. 

QUALCOMM-11\Ji\WEI CO."Flfl/:-.llAL 9 QlJ.'\LCOMM PROl'RlETAP.Y 

~ Gl-t7 

CONFIDENTIAL FTC-HUAWEl-0000712 

CX1018-009 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 10 of 31
000097 

No. 00004663 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b·2 

FTC File No.141-0199 

tho1.lgh said obligations 1.verc- made 1.!Xpressly applicable to the sublkcnsed 

Affiliate. F.xc1:pt as sel forth above, UCTINSEE shall hav~ no right lo sublkense 

any of QUALCOMM's lntellectual Pwp~irty. Any st1blkense by LICENSEE to <in 

Affiliate of LICENSEE sl\?ll. lerminate immediately if such Aililii1tu ('~ase!> to bu 

an Affiliate llf LICENSEE or ceases lo be a Chine.:;e Manuiacturt!r. A ;'lublicen~.:d 

Affiliate :-hall nol be n·quired to pny a i;1~parate foe under Section 5.2:1 bnt· lt:> 

Sales of Subscriber Dnit<; outside China And/or for Lise outside China shall hr 

considernd Sales of LICENSEE under U1at Si:.'Li:ion. 

5.2 Rlw.1ll.i!:!:-

OU:\LCOMM-HUAWFI cO:-.'FlDE'.'TlAL 10 QUALCOMM PROPRlf:.JARY 

,ht r;.tCONFIDENTIAL FTC-HUAWEl-0000713 

CX1018-010 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 11 of 31
000097 

No. 00004884 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

Royalties shall be payable 011 Subscriber Unit!: Sold by LICENSEE 

regardless of whether th<! us~! or incorporation of QUALCOMM'~ lntellectual 

Property ariSl!S from the ust' of one or more Components from whonl50ever 

purchased by LICENSEE. 

5.2.1 

5.2.2 Expiration of lntellectual JJroperly. In !he event Lhal all of 

QUALCOMM's patents applicable lo a Subscriber Unit expire, are invalid or ~.re 

no longer used by LICENSEE, LICENSEE s11all no longer be required \o pny 

royalties for the Sale of such Subscriber Unit. 

5.3 Most Favored Rnyalty Rate. Subject to the limited exceptions set 

forth belmv, if QUALCOM?vf grants a lkense to ;;i third party to manufacture and 

sell Subscriber UniL!i al a royalty rate less than the royalty payable by LICENSEE 

to QUALCOMM, and, which license will permit such third party to manuiacture 

and sell Subscriber \,;nits for use within Wireless Applications, QUALC011lvl 

shall (i) within tltirty (30) days after such grant notify T.TCENSEE of the terms 

anJ conditions in such third party license, and (ii) extend to LICENSEE lhe lo\'.-·er 

royalty rates granted in the noticed license and, at QUALCOM.M's election, any 

'..iU!-1.COMM·JlUAWE\ CO.'il iDE"'l 1 !.L 11 QUALC0~1~~ l'ROl'f!IET~.!IY 

A t;P-(., 

CONFIDENTIAL FTC-HUAWEl-0000714 

CX1018-011 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 12 of 31
000097 

No. 00004885 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL- 15 U.S.C. § 57b-2 

FTC File No. 141-0199 

nr all olher terms and rnndttions gTilntcd (wlw·fher more ur le..<..<: fm'Ol'ilh1e th;;n 

:he other t(~r1ns and conditii)t\.<; gr<1nted under this Contract) in th<> third partv 

!i<:L-i"\~O effective as Qf the date <In whir.h they became efftdi\'e in the third J"M"l}" 

lKt'll!.ie. ff l.lCENSEE Lritend~ to <i.:cept such l•:-WE'T royal"' ralt!s .• LlCENSEE :;.hall 

hi\v.: up Lo thirty (3U) da:•;; .1iler the di!tc of siH;h l\Olice M nollfy QUAl.COi\·ll\·f 

that ii ,-,ccepts ;1 license frMn QUALCOMM on ~uch )e.~.,,:r royally rnle ;is .... -;;·, 

made ?.\'ililahle to <my 5\:ch t>th.:r iicenst:l~. pnwidt'd Lhal r iCt:NSEE mu~t <ii>;o, ;;t 

QUALCOMM'i; n:yut!:>l. ,m;,:pl and be bound by al! olh••r material l('nn~ ;;nd 

cond1tion!i agreed t" b:o Ql:1u.CO}vfl'vl with =-nch olher JirnrL-;ee whkh Me 

not?ficd log~thC'r ,.,.'irh ;.uch !e~-;;·r roval!y rate. 

The abiwe parc1braph sh;1ll not apply '1-ilh re,;pecl t•J (i) any license or leg<il 

conumtinents mdde l'Y Qt:Al.COlvL.vl prh.1r lo the Efacuv~ D.ilt.;, (ii) any licen~e 

gr<>ntcd by QUAL<..0'.\P.,f t<• it~ Affiliate:; t1r (iii) any licl'.'nse ~rn11lt?d h\· 

QUALCOMM, !he coi'\Sidu;.tion for which consist<. in whvlL' or in parl 0f pillctlt 

rig;ht,.: or oth~r rightc: of ~rn.:h sub~tanlial v;ihm as. in th~· rti.'ason;ible judgrncnl ni 

QlJ.a.LCOMMi lo warrant (a) ,; r~duction in myalty rate:; below thf' r.:ire~ 

prv.-idi:d in this ConlTacl, or (b) lhe acccp\1111<«: (If such rii;hl .. in lfou of wyall;.;~. 

This Section 5"1 shall ncitapply retroactively, nor shall it be co11strui:d as l:'nli!lmg 

LICENSEE to the ti:tum •)i, or rredil for, ;my monpy p.ud by it prior lo Uw grant 

of ~uch third party licenso:: to such other licensee. 

3.4 UCENSfE',. l'urdi.i.<:i.>_ Cnmntll).lli!!ll. As mnteri,1! cunsidernti011 wr 

lhe royally rt\ti.>i;. nnd 11th~r nr,hts grantt:d lo UCENSF.E i.tndtO"r Lhis Contr,•.:L 

LICENSEE and il~ :<.ublh dl.:led Affiliate:;; :-:hull pnn:h..1se from QUALCOMM ~·r. ;i: 

QUALCOM.M's option, .i QL1ALCOM1vl Afiilidte (\)r il ;-ttpplier dcslgn<ited by 

QU Al.COMM if QT:.iAT.COM:.\I exits the CDl:vL.\ ASIC b\::;iness) UCENSli.E's <IDd 

iL"' sublic::cn~ed Affiliates n:quiremimls of CDM .. .\ AS!C::. Such purchase!' :;hill bt: 

on QUALCOM!vl'~ or QUALCOMM's Affiliate's (vr !'l1ch designnlcd supplier:.1 

;,;tandard term~ and conditk•n~ for such Cl)M ..\ ASIC~. If LICENSEE and it~ 

.mb!h.:cn.'>ed .~ffiliales d1> lWt p,_1r.-h.1Si? fn•m QLiALCO?vfM or i1 QUALCO~.J~! 

Affili.itc {or a 1mppliet ch!slf.nakd l'}' QUALCOl'.,1\•1) all nf LlCF.NSEf.'s and ii·• 

:mbHcctL~ed Affilial~s' rnquireme1\tl' of CDMA A$IC•. then, notwHhstanding lh<· 

pwvisions s~I forth in Scc::tiott 5.:'. (a), commencing on tht· dati:i that LICENSEE nr 

a ~u!.•licen::.:ed l\fhliate ni UCENSEE first Si::!!:> SLLb~cribcr UniL,-; incorpor?.hn;;i; 

CDMA ASlCs not purcha~ftd fn.>m QUALCOJvfi..1 or ;i QU • .\LC:Olvllvl AUiliak {or 

;uch dcsignat~~d supplier), llw royaltic::> for ;ill Sub.scrihcr Unit:; sold by 

LICENSEE and it~ subhc1::nsed Affiliate;; shall be i1\ foe rat!:!:. ~et forth in S<>ction ' 

5.2 (b). 

:5.5 QUALCO~L.'>'l's S~Comrmlment. 

\'\'ithin 

twenty (20) llusmel'S days ,1iler rct·C!ipl of n reqm.~t from TJCENSEE to purcha~e 

QUALCOMM-JIUAW!'.I CO'iFID!ThTL:U. 12 IJUALCOMM t'ROPR!El!un· 

1: ~'P.'-' 

....=..--~-~---

CONFIDENTIAL FTC-HUAWEl-0000715 

CX1018-012 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 13 of 31
000097 

No. 00004886 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b·2 

FTC File No. 141-0199 

CDlviA ASICs, QUALC0~11-1 shall respond by prnviding the price, delivery 

hmetable and other substantive information concem.ing such supply ;:md shall 

ensure lhal it obtains all requi..'iite export approvals or licenses. 

5.6 Tμx;:!f>. Except for <my income rnx<i!' pi3yabll' by QUALC0:!\-1.M 

undi::·r tht' tax law~ of th;;• United State:>, any taxe~ which must be withheld 

pursuant lo any treaty between the United States and any counlry, and any taxes 

wh.Jc11 must be withheld for QUALCOl\/lM's account under U1c applicable laws 

oi China ;md may not by law be paid by LICENSEE, n0 taxes, imposts L1r d\1ties 

~hall be deducted from thr; amounts payable by LICENSEE to QUA! .co:v!i'vl 

Lmder any clause of this Contrad, said ilmounb to b€' net to QUA LCOM!v1, free 

of any and all olhE'T deductions. Nolwilh.~t.inding llu~ foregoing, in the event 

5LLms payable under this C:ontr<ict lwmnw subj£'cl tn income or prnfits taxes 

under the tax laws of any country and apphc;ible treaties between the United 

States and such country, LICENSEE may, if and to the exlenl required by faw, 

withhold from each p;iyment the amount of said income or proiits lnxes due and 

required to be withheld of each payment. LICENSEE will furnish and make 

available lo QUALCOlvfl'vf relevant rt>ceipl..; rc>garding lhe payment of any 

country Laxes paid over t~1 any co1mtry's govrnunent on behalf of QUALCO:ll·fM. 

Such tax receipts will dearly indicate the amounts that have been withheld from 

the gross amounts due to QUALCOlvLM.. Any and all other taxes, leviE>s, charge~ 

or fees "Will be paid by LICENSEE for its own acco1mt. UCENSEE shall use ii:!; 

best efforts to apply for and/or assist QUALCOMl\.I in <1pplying for and 

obtaining from the Chinese govermnenl any exemptions from, or Wilivers or 

reductions of, any taxes on royalties, liceni>e fees, software fees or lechnical 

assista:nce fees payt1blc by LICENSEE Lo QUALCOM~·[ under this Contract 

(inclucljng but not limitecJ to the bu~it:iess operations tax, presently 5%) to the full 

extent such exemptions. waivers or reductions are a\•ailable tmder Chinese 

domestic law, the U.S.-China Tn~aty for tl\C' A l'Oidance of Double T<1xation or any 

other treaty. 

5.7 Conversion to U.S. Dollars. All paymcnlc;, including but not 

limited to royalties, the Commercial Sofhvarn Fee, and the fees described in 

Section 5.2.1 hereof shall be paid in U.S. dollars by wire-transfer and at a bank to 

hE> dp_.;igmitPci by thE> pay~. Tn thP extent that the Net Selling Price for 

Subscriber Units Sold by LICENSEE outsidP. of the United States is paid to 

LICENSEE other IJ\1m in U.S. dollars, LICENSEE shaU converl the portion of the 

royalty payable to QUALC01vll11f from such Net Selling Price into U.S. dollars al 

the official rale of exchange of the currency of the cc>untry from which thP Net 

Selling Price was paid, as quoted by Lhc People's Bank of China when such 

counrry is China, and in all other cases as quoted by the U.S. Wall Street Journal, 

for the lust business day of the c<Jltmdar quilrler in \•1hid1 Sltch Subscriber Units 

W•~rc Sold. lf in a country other than China the transfer of or the conversion into 

U.S. dollars is nol lawiul: the pi!yment of such part of the royal lies attributable to 

QU,\LCOMM-HUAWEl C01'AD!:..'.-l"l,\L QL·1\L.COMM PROPRIETARY 

~6~1,--

CONFIDENTIAL FTC-HUAWEl-0000716 

CX1018-013 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 14 of 31
000097 

No. oooo4tia1 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

the Sales in such c.ountry shall be made by the deposit thereof, in the currenc:y of 

the country where the sale was made on which the royalty was based lo the 

credit and account of QUALCOMM or its nominee in any commercial bank or 

trust company designated by QUALCOMM in \niting and located in lhat 

country, prompt notice of which shall be given by LICENSEE to QUALCOMM. 

5.8 Delivery of Software. LICENSEE, i'lt its option, may elec::t to have 

QUALCONIM deliver the Software lo LICENSEE for use solely in accordance 

with Section 5.9 below. To exercise such option, LICENSEE must, no later than 

hvel've (12) months after the Effective Date, (i) deliver written notice to 

QU1\LCOMM nf !!:$ <.'!1.:clion tt• i::xcrdsr, .::uch optinn and (li) pn~• h> 

QU1\LCOMM. hy wire transfer lo QUALCO!vlt-.i'!' account, the Commercial 

50f1w;ir(' FP.~~. The abo•;e i:optil.in sh11ll expire if mi: ew-rrised pun>uant to tile 

abon~ procedur~· <m .:ir befr·re tlw tw.:·lvc ('12) mon~h ;;nni\Trs11rv of the Effi:cll·:t' 

Dat~. Within t~in (lf!) ciay> aft<-r LICENSEE f'Xerci~e:' ~urh !'ption as set forth 

above, QUALCOMM sl:m.ll deliver a copy of the Software to LlCENSEE. 

5.9 Ri!ffehl !p_J,:.<e SoftwMe .. Upon exen-1w ,·,j lhc- opl'lon as set forth in 

SecUon 5.8 abovL', LICENSEE may use llw 5vllwarn J;1;lcly to' clevt>lop. 

manufacture, St.'11 ;md use S.ubsrril:ter Llnlls Ill a.::ct.•rdan•:l' with and subject lo rlw 

tenns and conditions of this Contract, including'but not limited to the payment 

•\! m-.,-.1llles spedfie<l in Section 5.2. A~ reasonably necessμry to develop, 

manufacture, Sell and usi: Suhsmber Uni!~ in accordance with and subject to the 

r<:rm~ .:md conditiL'ns of I.his Contract, UCENSEE shall have the right to (i) alter, 

nwdify, translate or adap~ Lhe S(lftw· .. m: (and any dt'!Wclh\"~ worki; ir CT<~t·.::.~ 

theretrom) or create dt>rh·allvt.> works based Uwreon; (Ii) U5C or copy th;; 

$oftwarn {and any dl'o'rivi\tive work~ it cr<:atc!; L~erefwm) for flrchivnl pnrpo~es. 

Oi!I make and clii>lrlbuk (upies of th(·! !:>oflware (and <inv dt~rivalivt' work.<; :: 

cr;mtes therqfrom_l, sol~ly :n 01achlne readable form. r.nd 01;!y in conjunction .in~! 

fo:ir llSll soldy w'ith Subscriber UniLc; Sok! I-iv LICENSEE; and {iv) sublicen&: tha 

t:!",'. <It the Software (;ind ;mv d.:rh·aliw '~'ork• 11 ·cnudt>.:> lhi:rcfrom) solclv ii\ 

rna.c:hine-read<1ble form and snldv for IL<;<: iu cou.necUlin with such Suhsdfoer 

Unit:;. LICENSEE l'haU h;we no right to ~ublicerr~e, trnnsfl":r or oth~:rwii>I.! disclos\:' 

the Software in wurc(· rnde fonn to any Li)ird party. Except as expre:;sl~ 

pl'.:rttilled above. T. TCENSEE i:.hill.l not u~~ or distribute lhe Software for iln~· 

l'th~,,. purpose. QUA1.CO!v1M rct('ljnH "" ownersltlp rights m .and to th~ Soflwar01 

and deiiw1tivc works but LICENSEE shCJll rntain owne.r:;hip 1if all original code 

which ii adds or inserts <the "New Cc~e") in lhe S::.>ftware lo produce such 

derivi!liVl~ works rcg;.1rd.le!-s of whclhC'l' ~uch New Code can be used S{?paralely 

from the &iflwiire ;md/c•r derivative works. l.lLcNSEE shall hnve unlimited 

u~ge rights lo the Nt'I'" Code when .such New Code is used scpnrately from the 

Svflware ;md/or deriva_rive work$. N1~twilhst;i11Jmg th~ ab<we, nothing herel;i 

s!1all giw QUA lCOM:-.1 any right t0 or intcrt:>l in the New Code, ;md 

UCENSEH shall haw ml obligation to disdo~<" or prc-\·tdt: ,U\y derivative W<.wk.<: 

QUAL<:OMM·HUAWEI CONFIDENTIAL 14 QUALCOMM PROPIUETARY 

A: ~l. 

CONFIDENTIAL FTC-HUAWEl-0000717 

CX1018-014 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 15 of 31
000097 

HUAWEI TECHNOLOGIES CO .. LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

./UALCOMM. NotMng in 10;, Se<Uon >holl b• d"m"1 to g;ont onv d•ht to . • 0 

.,. '"" 

No. 00004888 

LICENSEE under any of QUALCOMM's patents (such rights, if i'lny, being 

granted only under t.he lerms of Seclion 5.1 above). 

In addil10n, LICENSEE srldll have the right to oblam any of the software 

versions listed on Exhibit D hereto and rights to use such softwilre similar to 

those sel forth .ibove up(Jn payment of a fee that shall not be more than the fo?e 

listed. on Exhibit D rnrresponding lo such version, which fee is no greater than 

the iee thnt QUALC:Oi'vf\f generally charges il'> Subscriber Unit licensees for such 

soil\,rare. 

5.9.l Represent<itil"in Ref;ardin~Use. LICENSEE hereby 

represents and warrnnt~ to QUALCOMl\1 lhal the Softw;:ire will be used by 

LICENSEE solely to develop, manufacture, use and Sell Subscriber Un.its subje~t 

to ;md in acc<irdancc with the terms and conditions of th.i.~ Contr<Jct. 

:i.10 BRF.W Strategjc Alliance. LlCENSEE and QUAtCOM1-1 will 

rnoper;ite to advance the deployment of BREW enabled end-user terminals as 

fol111wr:.: 

5.10.1 As long as QUALC01'1M make!'> th•~ l3RE\l\1 software 

avililable lo LICENSEE at no charge and warrants the tcchmcal stability of the 

BRF.W software and one or more wireless service providers in China publicly 

expresses support for the BREW platform or requests to purchase BREW enabled 

Subscriber Units, LICENSEE shall install the BREW platform (1) in the majority 

of the Subsffibt~r Units produc:Pd by LICENSEE and (2) in all of the Subscriber 

• Unil'> for use in the network(s) of the service provider(s) expressing such support 

or making such n!que&t unless such service provider(s) expressly requests that 

BREW not be in~talled in the Subscriber Units intended for use in its network<;. 

For purposes of this Section 5.10.1, the phrase "install the BREW platform" shall 

mean to incorporate QUALCOMM's BREW APL including but nol limited lo 

QUALCOtv1l\.1's down-loader, configured and delivered by LICENSEE in such a 

wav that, if and when a earner uses QUALCOM?vI's BREW distribution system, 

BREW applications can be (i) downlo;ided to LICENSEE·s Subscriber Units using 

such BREW rJisl:ribution system, (ii) launched by the consumer, and (iii} 

displayed t(l the consumer. LICENSEE shaU use its best efforts to market, 

promote and sell such BREW enabled Subscriber Units. QUALCOMM shall 

provide LICENSEE with reasonable technical assistance and training ;:it no 

ch;:irge in connection wiU1 lhe installation of BREW in Subscriber Units. The 

hours of sud1 assistance ;md training shall not be counted against the technic3] 

nssis:tance and training hours described in Section 4.2. 

5.10.2 Upon request from QUALC0111.1, UCENSEE vtill assist 

QUALCOMM in -promoting the BREW platform to \\'ircless service provider:; in 

15 

Lsi 

QU.\LCOMM PROPRIETARY 

~ G'-'-

... -, __ .., ~'Jki'- - .. _ - -.: ; __ -

CONFIDENTIAL FTC-HUAWEl-0000718 

CX1018-015 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 16 of 31
000097 

No. 00004889 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL- 15 U.S.C. § 57b-2 

FTC File No. 141-0199 

UCENSEE's marhts and will io;suc and alfow QUALC01'fM to issue a press 

release with LICENSEE's c1m~enl (;;uch consent not l(I he unreasonably withheld) 

st<lting LlCENSEE's ::.upport for lh~ UREiW pfotfmm. . 

5.10.3 QUALCrnvHvt an<l LlCENSF.E will t'1)0per.1l<~ tn enwurage 

applirntion developers to deYclop applicatkms for op.-r,1lil.)n unqer tht> BREW 

l~nvironrncnt. In additinn, to lht' exlenl that UCENSEE devek)ps, or funds the 

rlevelopnwnt of, appli.::iltion;:. intended tn operate rin ·.virclr.:;s handsets or 

de\·ices, L!C'ENSEL will use best ~·{forts tlJ cause such applicatione: to operate 

\!Vt'r BRcVV. . 

(>. LICENSE BY LICENSEE. 

Tn con,idcration of 

UCENSEE 

herl!by grants to QUALCOMM a worldwide, nontransfer<1ble, non-e-xdusive, 

fltlly·paid, irrevocable and royalty free license (without the right tn t>t1blicense, 

e.\rert as sel forth below) to use TJCENSEE':- Intellectual Property to (a) make 

(and have made) and import, use, sdl, lease or othcn\;!'e d1sp1)s1· of Subscrib~~r 

Units and (b) to make (and h!l'"e made), import, use. sdl, leas1• or olherwisc~ 

dispose of Components. N"o other, further or different licensf' is hereby grankd 

t1r implied. QUALCO:'i.111 may grant sublicenses under LIC:ENSEE's lntellc~ctuill 

Pmperty !>Olcly to Affilit:i!.:>S of QUALCOMM. \"\'ithout the prior written c;onsent 

of l.[CENS.1:!/.!, QUAlCO:i>.·1r-.I shall not sublicense tn any other third party 

LICENSRE's 111tcllectn;;l Property. Nbtwitl1standing anythir1g to lhe contrary in 

this Cnntract, QUALCO'.\·fl\·t may sublicen.~ the licenses from LICENSEE under 

this Section 6 as to Components to any succe:;sor (by purch;ise, divestiture. 

merger or otherwise) to all or substantially all of QUALCOMM's Components 

busine;;s. QUALCOMM shall give prompt written notice to LICENSEE nf any 

such sublicense. 

The Parties hereby acknowledge that, i::xcept as olhen•:isc ~·xpre<;s1y set 

forth in this Conlr<ld, LICENSEE 8hall have sole; ownershlp to the; intdlech111l 

property obtained by UCENSEE through independent research and 

development, regardless of whether it is incorporated in the Subscriber Unit..;, or 

whether it is derived based on the intellectual property granted hereunder. 

G.l:ept as olhen,tise provided under this Contr,ict. without tht' prior writtPn 

authorization of LICENSEE, QUALCOMM shall have no right to use such 

intelkclu<il property. 

7. .Intentionally omitted. 

QUALCOll.l~l-lltJAIVEI C01'1FLDE~IJA1. ({J QL"ALCOMM Pf!Ol'RlETARY 

~ 61'-l.-

CONFIDENTIAL FTC-HUAWEl-0000719 

CX1018-016 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 17 of 31
000097 

/ 

No. 00004890 

s. MARKJNG; LOGO 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL- 15 U.S.C. § 57b-2 

FTC File No. 141-0199 

S.l Patent ~vfarkings.. LICENSEE ag1ees to affix to the exterior or the 

intf.!rior of all Subscriber Units incorporating any of QUALCOM'tvf's Intellectual 

Prnperty and Sold in t.he United Slates a legible notice in English reading: 

"Licensed by QUALCOlvl\1 Incorporated under one or more of tlw fo!lowini" 

Patents," followed by a h,;t of applicable patent numbi..'T~ taken from the list of 

QUALCOMM's palffits or as m,1y otherwise be instructed. by QUALCOM!v1. 

8.2 1.Q.~. Alt.ich.;d hetctt> as Exhil?il E is the CDMA designated lo..;<i 

(lhe ''Logo"). 11\e Partie~ agrcr. thnt QUALCOMM l" !he ~wmer of the Log{>. 

QUALCO.tvIM. claim!'i all n)mmon law tt·ademarks in lhc Logo and has filed. or 

"'ill file, applkiltions to obtain trademark registration for the Logo. 11, for 

whan:vQr reason, regi!itrations arc no.t granted 1>r ui:c 1.1£ the Logo is deemed by 

QUALC01v1M to b~~ im1d\•1::.<ible, QUALCOMM shall huvt.> the righl to ellher 

dc..-ignutc a m:w logo, :;ub1cct to TJCF.NS:EE's appro\'al, which approv.11 t-hall not 

be imreasmmbly withhdd, or terminate UCENSEE's right to u.~e tlw Logo, Qr 

continue LlCllNSEE's right lei ui;C?Jhe Logo under QUALCOMM's common law 

rights. Upon LICENSEE':; request after the Effective Date, QUALCOMM sh111J 

file with the Chinesi;! trademark office any documents required by Chinese law to 

e::.tabJish UCENSEE's nght to use the Logo in China. 

8.3 Lol!o Disvlav. Unless 0U1erwise notified bv QUALCOMM as sd 

forth in Section S.2 abo",-e; UCENSEE shall prominently display tht• Logo on th~· 

exterior of each Subscriber Unit Sold by it. The e.>..act exterior location ;md size 

shall be subject to LICENSEE's reasonable discretion, provided that thE~ Logo 

shall be readable and shaJI be permanently affixed. The Logo shall be designed 

to remain visibly displayed on the exterior of tlle Sub.scriber Un.it. 

8.4 Trademark Limitation. LICENSEE does not hereby acquire, and 

shall not attempt to acquin', by regisl:Tation, use or otherv.ise, the Logo, or any 

confusingly similar m.irk, t•r any other trndemark, service mark or trnde 11ame oi 

or LLsed by QUALCO?vTh:L or ;my confm;ingly simiiar mark. 

8.5 General Oualitv o( Subscriber Units. Throughout the term of this 

Agreement, LICENSEE shall ensure thal, on average, tl\e Subscriber Units Sol.i 

by it meet the generally accepted standards of gualil'y and merchantability for 

Subscriber Units in the markets in which tl1ey are Sold and will nol be of such 

substandard quaHty as to dmlinish tlw good \~ill af-.<;ociated wilh the Logo. 

8.6 Standards Compliance Testing. LlCENSEE repl'esents and 

warrants that the Subsniber Units and Components that il makes or has made 

will adhere with and conform to, in all respects, the specifications contained in 

the applicable CDMA Standard and that LICENSEE shall comply with lhe rules, 

regulations or other reqnirem~nts set by surh authorized st<mdards body. Solely 

17 QllAl.C'OMM PROl'RTF.rARY 

)F r;.r.-

-~. . ........ 

CONFIDENTIAL FTC-HUAWEl-0000720 

CX1018-017 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 18 of 31
000097 

No. 00004891 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL - 15 U.S.C. § 57b-2 

FTC File No. 141-0199 

for Sub10cribPr Unit mr>dels tha~ are nol ~ubjl'd t0 lypth'tppmval k!:>Ling by 

g<wcmmc>nt age.ndto•,; eir h<\H~ n1)! received n<?t>·:,-.rk .::nrrance pl~rnuts 1 . .ir 

,:omparable apprnvrils in;.m Hie wireleE-s sl!rvice pn.w1ders to whom lhev ar.: 

S1.>ld, LICENSEE ~hall, a! QUALCOMM's r(!a.o;onable written rt:!qU~!st. t'~rrrut 

QUALCOM.M or e1,lili~ ucsignalt~d by QUALCOM.1.\1 and accepted bv 

UCENSEE, whirh acc~ptanc.:: s!mll not be unrt:'<-l~nabl\' withheld or u1ifoy(~d. tv 

perform tests of UCF.NSEE''.'> Suhs;criber Unit.~ lo · .:n.:;m·e complinnci: iind 

confor.ltlily with Llw CD.MA S1m1dard, Tf such h•sP.; indicate materi;,! 

noncompliflnce or noncon.iormily therewith, such te5l~ shaU be at LICENSEE's 

cost anti LTCENSEE shall rf;imbur.se QUALCOM"t>.·1 for any stt<"h reasonable tests 

performed by QUALC01vl1v1 at QUALC01vfM's Lhe11 ~tandard rates for such 

servit:cs; provided that the total fees for each such kst performed shall noi 

exceed $10,00D. N'onconforrning Suhscriber Uiuts, jf .lm·, shall not be~ sold nr 

markeh!d by LlCENSEl until t11~ non-confonnily is correc:ted. 

SI. RE!'RESENTA TIOKS. 

9.1 LlCF.NSEE's Repr:,i;i;enmtiom.. LlCENSEE ht'reby represents and 

warrants lhat (a) it hil;; r.:c~1wd all nccci;sary corporale approvals and that the 

signatory bc:low is duly authorized lu execute this Cl1nlract on behalf of 

LICENSEE; (b) as oi the Eik'LtiVe D<1tc, LICENSEE is a Chinese Manufacturer, 

and (c) LTCENSEf.. and/or its Affiliates owns and has the nght to license t.lw 

Intellcchlal Property lligh~ licensed to QUALCOMM heretll1der. 

9.2 Q!.!b_LCOMi•f'.~ Rcprli~t;Jtt.itiom, QUALCo:tvTiv1 hereby represenh 

and wam:rnl.$ that (al it has rcc.:·ived all nl'!cessary corporate approvals and that 

the signatory below is duly ,1uthori:wd to e,-.;ecute this Contract on behalf of 

QUALCOMM; (b) tl1is Contract i!:o in cmnpliancc with the Export Administration 

Regulations of the United States; and (c) QUALC0).,1M and/or its Affili<ites 

owns and has Lllc right l<' license th1~ Tnlcllr.chial Prnp1>rty Rights licensed w 

LICENSEE herew1der. 

10. INFO!Uv'IA TIO:-.l 

10,l Reslrictions on Disclosure and Use. All documentation and 

Leduu..:al and business l.nfonn;itlon <inct intellectual propc.rty in whatever form 

recorded that a Partv does not wish to disclose \"'ithout restriction 

('1nformation") shall remain the properly of the furnishing Party and may be 

used by the receiving Pilrty only as follows. Smh 1nformation (a) shall not be 

reprnduccd or rnpiNI, in whn!e •.>r part. cxccpl' for use 01s o:·x}'llc:;sly authorized m 

this Contract; aud (b) sh>1iL togelher witli <iny full or partial c.npirn>. the-reof. hl'elurned 0r d.estwyed ,.,,hen no lt>ngl?T needed or upon any tcn:ninali.011 of !hi;. 

CN1lr.:id, and {c) shn11 bi! di~ck•sed Lm!y to empklyt.'eS r•r ilgenb of a PartywiU' il 

need ll) know. Moreover, :'ouch information shall be used by the rect!iving 'Pnrly 

on1y for the purposP of performi.n~ under this Contract or in the exerd8e of its 

QI "ALCO.\IM-1 IUAWEl CUl'FJDI>'TJ-\L 18 QL r,LCm1M PROPR!El AR 1 

~c>l, 

CONFIDENTIAL FTC-HUAWEl-0000721 

CX1018-018 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 19 of 31
000097 

No. 00004892 

HUAWEI TECHNOLOGIES CO., l TO. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

rig;hls it mciy receiq; m1der Lhe·ptovisioi'is of U1i!' Contract. Unle':'s Lhe fomis.hing 

Party consenti> in this Contract or 0U1erwise in \\•riling. such fnform11lion !.hall bi: 

held in slricl confidellC'e by thQ re~iving Pnrl'y. The receiving Party may disdosE: 

!"uch lnformutk~n to t)th~r pcrsoni;, upon the furnishing Party's prior written 

.mUmrization; but soidy to perform acts which thi~ clause i?xpres,;Jy uulhorlzc:: 

th~ rect~iving Party to pi.>rform itself and farther provided such other per<'<.•r 

af.,'Tet>S in writing {a c(lpy of which writing wi)J ~e provided to the ti.Jrnishlng 

t'arly al its request) to the same conditions re:;pccting use or !nformati<>n 

contained in this datL~r and to any other, reasrmabl~ c1.mditions rcqumded by the 

furnishing !'arty. These restrictions on Lh(:' use l'.lr dLo;dosme of Tnformalh~n :.hall 

nril apply to any Tnform.ltion: {i) which can be prov1:-n to be or havl' b·e;m 

indt'pemienUy d1weh1red by the receiving Party or l.nvfully rcceivc·id frl:'e nf 

n~triction from anoth.:!r wurce having the right !<.• s~1 furnish such lnfonnr.tivn; 

or fii) aflt~r it has bi.!ccm<? generally ava.ilable to the public withoul breach of thb 

Contracl by lhl:! rerciving Party; or (iii) which at th11 tmw of disclosurt> lo !he 

rto<:oiving Party wa~ k!i\1>\J.t to such Party free of restriction ,1nd dearly.evidenc.:d 

by documentation in such Party's pnsscssio11; or (ivl which tlie disdosinr; Party 

;iizrces in writing is free oi »11ch restricti(ms. 

l(}.2 Scop"' oi Information. lt1frrnnation is s.ttbject Lo this f.ecifon 1:) 

whether delivered orally or in tangible fo)·m ilnd without n.-gard lo wht~lher it 

has been idcntifird or marked as confidcnlial 01· otherwise subject lo this S.-ctilm 

10. Eiwh Parly «grecs in u$e its bL'Hl eifol'li> to mark or otherwise ide1\tify a~ 

proprietary all Information they desire to be subj1•cl h.' the terms of this dau.<;1~ 

before furnishing ii to the other Party. And. upon request; a Party shi.lll 

promptly identify whethe:r spedfied information must be held by lbc requesting 

Party subject to this clause. Informatlqn which is delivered- orally ·:;hall be 

surrunarized in writing by the disclosing Party and delivered lo the n~ceiving 

Party within forty-five (45) days after disclosure thereof. 

10.3 El..tmishin£ lnfonnali.on l<t.INJ:d 1">,uties. Nolhing herein sh.3li be: 

dt'emed t() bnr disdostl.!'e nf lnformalion by a receiving P.irly to U1itd party 

,;ubconlractors ur prospective cu~lmners Qf llw recei\<.ing Party \\1ith a neec.l to 

know, without the written mnscnl oi the furnishing Party, if such disclosure i!' 

reasonably ncces~ary for enjoyment nf U'I.£? recei\'ing Party's rights IL• U~f' 

Intellectual Property Rights licensed under Utls Contract, and provided Lhal e.wh 

,<.uch third parL)' agrees in wr.iting to protect the lnfonnation tmder terms and 

conditions comparable, in all matP.rial respects, to U1c terms ;:ontained in this 

Section 10 and Seclit;m 18 with resped to suTl'i\·ability. 

1 l. DlSCLAIMER/ U.lvHTATION OF LTABIUTY. 

lLl EXCEPT AS EX'PRESSLY SET FORTH IN THTS CON'fRACL 

QlJALCOMM MAF 'l:S ... NO W ARRANTIE5 IN THlS CONTRACT', EITHER 

EXPRESS OR ll:lPUED, A5 TO PRODUCTS, TECHNOLOGY, MATEHJAlS, 

QI ','.LCOM.\1 HUAWEI roi-:flDS-. f]:,I QVA!.COMM PROPRlf:TAI'.) 

~ ,,;r; @1-t.-

19 

...... -·r;;r·· 

CONFIDENTIAL FTC-HUAWEl-0000722 

CX1018-019 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 20 of 31
000097 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b·2 

FTC File No. 141-0199 

SERVICES, INFORM A TlON OR OTHER !TE}>'IS IT FURN!Sl-rn.c; TO LICENSEE, 

INCLUDINC BUT NOT LHvtffED TO WAlmANTlliS OF M..L:RCHAN"fAllTLITY 

A.ND FJTNESS rOR A PARTICULAR PUHPOSE,. OR Tl-IAT 5'UC11 ITEMS ARE 

f!{EE FROM THE RIGHTFUL CLAIM OF ANY THiRD PART~, BY VvAY Of 

INFRJNGHMENT OR THE UKE. 

QUALCOMJ:..1 SHALL NOT BE LlABLJ.: i 0 LIC~NSE'E FOR A,.;'\/'{ 

INC!DENT.AL, CONSEQUENTIAL OR ANY OTHER lNDIREC'T 1.0SS OR 

DAMACB ARJSING OUT OF THIS CONTRAC'I OR ANY IU:SVLTiNG 

OBLIGATION OR Tl-fE USE OF ANY INTELLECTUAL PROPERTY RECEl\'ED 

HEREUNDER, WHElliER IN AN ACTION FOR OR Al{lSJNG our Of 

BREACH OF CONTRACT, TORT, OR ANY OTHER C...\USF. OF AC110\!. 

QLlJ\LCOMM SHALL BE PliR1vUTTED TO ENJOIN THE UNAUTHORIZED 

USE BY LICENSEE OF ANY OF QUALCOlvlM'S TNFORMA TlON. 

11.2 ~ation of 1fopres~tation an.cl Warrnutie;;. Nothjng contaim:d in 

this Contract shall ht> construed· as (11) rt>qUirin~ the filing of any patent 

applicalion, Lhe seeming of any pafonl. or t.hc n"l.1mt.1i11ing of any patent in for,;r:; 

(b) a warranty or representation by either Par!)· il~ tr' the validity l)r swpe of an~· 

patent, copyright or other intellectual property rir;ht,; (r) a warranty or 

representation that an}· manufoclure, snle, lease, nse or in1portation will lk lrel;! 

fr.-.lll infringem<:nl oi patents, copyrights or .1,1th~r intellectual properly rights of 

Dthers, and il shnll be the $ole respon.'lihility of LICENSEE to make sud1 

determination· JS is. nt:c<'.8sary with respect to the acquisition of licc>.nses lmder 

!'" t.:uts and other inlelkctual pmperty of third parties: (d} an agreement to tiring 

•.>r prosccule aclions or !:uils agninsl third parties for infringement; (e) an 

Llbligalion lo furnish .::ny manufaeturing assistance: er (f) conferring any right to 

t•t<t!, in advertising. publicity or otherwise, any name, trade name or trademark,. 

or any contraction, abbreviation or simulation thereof !ol11er than as set forth in 

S<>cti('ln 8). 

12. INDEMNJTY fOR DAMAGE TO PERSONS. l'ROPERTY OR BUS11'.TESS 

12.1 fos!enmification b\• LICENSEE. L!CENSEL:. shall ind(!mnify, defond 

and hold OUALC0lv11vt h.armla;;f fr(>m, 1111y ond llil i.:!.:im$, j11dgm1mts, liabilities. 

rnsl.5 imd expenses (indi1ding attonuiyi;' fees) arising out of nr related, directly or 

indirect!)•, lo any injury, loss or damag<l to p<>rsons, property or husinet<?> ari~ing 

from. relating tu, or in ;my way connected wiU1, arty Subscriber Unit:. or 

Cnmpnnenls which UCJ.::NSEE nli.;.m.1foch1res or has .manufactured and Srcll~ tu a 

tlmd party. LICENSEE agrees to indemnify and hold harmless QUALCOM:lvl 

.it;ait\..;t all liability or responsibility of LICENSEE or of others for any failure 

,1trributabk lo LICENSEE in production, design, opc!ration or otherwise of 

products manufactured by or on behalf of LICENSEE and Sold to Ulird parties. 

l)l- ~.LCOMM-HUAWEI CONFJDE'' TIAl. 20 Qt:ALCOMM PROPRIETARY 

).,,. /,..(,,I-<--

ft .oi, 

No. 00004693 

CONFIDENTIAL FTC-HUAWEl-0000723 

CX1018-020 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 21 of 31
000097 

No. 00004894 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL - 15 U.S.C. § 57b-2 

FTC File No. 141-0199 

12.?.. lndenulilication by OIJAJ.COMM QUALCOMM shall indemnify, 

defend 11ncl hold LICENSEE hai:mless from. any and all claims, judgmeni;., 

liabilities, c:osts n.nd e>:pei'lSes (including attorneys· fol'S) arising out of o.r related, 

ditectly OT indir'i'ctly. ll"I any injury, loss 1.)r damage ln person..:;, property or 

business arising from, i•elating to, OT in any way connected with, any Subscribe-r 

Units OT Componimts whi<;h QUALCOMM manufactur<"-4 or has manufadurc:~d 

and Sells to a third party. QUALCOlv11vl uf,'Tee~ to indemnify and hold hannk:.>:-

LICENSEE against all liability or responsibility of QUA l,.COf.·!M or of' others for 

any foilur~ altrihutab!e to QUALCOMM i.n productit..n, design, opcratio11 t•r 

otherwise· uf prmhict~ milnufactured by or on behalf eof QUAl.CO?vnvl nnd Sold 

to third parties. 

12.3 Ne>lil'e. Defensc- and CM•perati<.m. The part)' seeking 

indc:mn.lfkation under Section t2.l or 12.2 above ~hall provide the inderi11ufying 

party with prompt nutke of any claim within such provision~, shall give the 

fndemni!ying party lhe full right 1:<1 defend any surh drtim and shall cooperate 

iully in ~uch deft'nr;"'. 

13. TERJvfTNATICN 

13.l TcrminMiun in the Event llc;,.lliSEE Cea•;er;, to bt;> a Chines:: 

;-,fonufocll!lli· Th.is Contract shall terminate immediately and automalicaiJy 

without notice, an opportunity to cure, or any furtlu~r J.Ctl(ln on the part of 

QUALCOMlvI, in the event that LICENSEE ceases to bl~ a Chinese Manufachirer 

unless LICENSEE has ce;ised to be a Chine$e Mam:facturer because a license 

holder de:;cribed in clause (b) of tJ1e definition of '"Chinese Manufacturer" in 

Section 1 heret)f or a non-Chinese partner or non-Chinese equity Ov.'ller or nonChinese Affiliate described in clause (c) of sud1 ddinition acqufres direct or 

indirect ownership or control of more th<1n 20% of the voting stock of LICENSEE 

through purchases made on a publk stock e>-change (a "Partial Arquisilion"). 

LlCENSEE shall have sixty t60) days after a Partial Acquisition to (i) cause the 

ownership of !';llCh license holder or such non-Chi..'let,c partner or non-Chinese 

equity owner or non-Chinese Affiliate to be reduced to less than 20% for the 

remaining term of this Contract or (ii) exerci5e the Option described in Section 

13.1.l below. If within ~11rh sixty (60) days, LICENSEE do~s not do either (i) or 

(ii) abow, then this Contract shall automalkally terminate. LICENSEE shall giv., 

notice to QUALCOMJ\-1 within five (5) business days oi the date on which 

LICENSEE ceases t<> be a Chinese Manufacturer. 

Ql:1\LCOMM·llLIAWEI CO'.\l'lDESTlAl 21 QUALCOMM PROl'lllh'TARY 

. ~ ,,.t.. 

CONFIDENTIAL FTC-HUAWEl-0000724 

CX1018-021 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 22 of 31
000097 

No, 00004895 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

13.1 l Ophoi:i. In the event of a Partial Acquisition, LICENSEE 

may exercise an option (tlw "Option") to retain its righb and obligations under 

this C()nliact; pro\"Jded. !H1wever, that the rovalties pdyahle for <lll Subscriber 

Units Sold by l .ICEN:Ol.:E aftei· the dt1te of such l'artiill A«qHisilion, rei;ardless of 

where manufacllU'ed l-'r Sold. shall bi:• at Lhe applko'.ble rates specified in Section 

5.2 (hl (1i) ol thL-; Lc">ntr.id. <md the Si:-lling Price for al! such Subscriber Units sl1all 

be cakul;ittO>d as thou?\"h such Subscriber Units were made outside China. To 

cxercis,~ this Op lion, LlCEi\'SEE must give QUALCO\.lli[ notice ol such exerci~e 

within sixty (60} tfoy~ ;.;frer such Partial Acquisition. 

l'.'.2 Tei:minauon For (i\ttSt! bv Q)JALCO!v[Jyf. QUALCOMM mav 

lerrnin<ite this Contrdct, bv written notic~ Lo LJCENSEE. if UC:ENSEE shall al an~· 

time dduull in th<e pa:m~nl of rnyaltit'..'. or any otht-r amotmls Jup hereunder r;r 

the makmg nf any report hereunder, or shall commir any mat{'rial breach of any 

cO\-cnanl, represL·nt,1t10n, warranty 01· <1greement herein contairwd, or shall make 

any false report to QliALCOfl.·lfl.·1; provided, howe\·er, U1at in thP case of any 

sm-h breach which i;; c.opable of being cured, QUALCO'l\11vl shall not have a right 

to terminate Lhi" Cnntract ior cause unle~s r;nd tmljl LICENSEI: shall have failed 

h.> remedy any SlJCh default, bre.Kh or report ·within forly-fiw! (45) d11ys aftt:r 

rcceipr by LICENSEE 0£ writt...on notice thereof by QUALCOMlv:!. LICENSEE 

shall bt'.' ilble lo effectuatl• such cure with respect to a default in the payment of 

any royally hereunder no more than three (3) time~ during 111e term of this 

Contract. Upon tcrminution of this Contract for c.:mse, UCENSEE sh,111 duly 

i\ccounl lo QUAI.CO\f\[ for all royalties and nthl'T paymenlc; within ten (lU) 

d<ip· of such tcm1irnition. 

13.3 I.crmi1ia!i(•11 for Cau!l.~ by LICENSEE. LlCENSEF. may terminoitp 

this Contrad, bv wr[li«n nolke !ti QUALCOlv!M, if QUALCOMM shall at .mv 

time commit any material breach of any material cov.:·nm1t. representatio~, 

w,uranty or ilgreement herein contained; provided. however, thal in the caSt:' of 

any such bwach which 1~ capable of b<'ing rnred, UCE!\.'SEE shall not h.:wc n · 

nghl to terminate this Contract for nrnse unless and until QUALCOMM ~hall 

ha\·e faikd to re1rn:·dy am• such rrt.1tcr:ial brei'1ch with.in forl:v-five (45) da1·s after 

receipt by QUALCOi-1Jvi ;f written notice thereof by l!CE-.!SEE. . 

13.4 Iktnkrupl:cv, Dissolμtion or Liquidation. A P<lrly shall provid~ 

written notice (Lhe "Notice") to the other Party immediately upon the occurrence 

of any, of the followmg events (the "Events"): (a) imolwncy, b;mkruptcy or 

Hqujdation CH' f1lmg of <'-11Y application therefor, or other commitment of an 

affirmative act of inscilve.ncv; (h) att<ichment, execution or seizure of substantiallv 

all of the assets nf the nt'hfving party or filing of any application therefor; (c) 

assignment or Lranl>fc!r oi that portion of the business to which Uus Contract 

pertains Lo a trustc~ for the benefit of crcdl!0rs; Id) di:;position, by sale or 

a!"signmenl of ~II of ir::. nghts, of that portion of tlw h1~m~·~5 or Lhe material 

22 Ql".o,J,COMM PIWPRIETAR) 

~~(, 

CONFIDENTIAL FTC-HUAWEl-0000725 

CX1018-022 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 23 of 31
000097 

No. 00004896 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL - 15 U.S.C. § 57b-2 

FTC File No. 141-0199 

ilSScts to which this Contract pertains or of the majority of the equity or votingslock of LICENSEE; or \e) tcrmination of its busirn;5~ or dissolution. Eitlwr P;irt-\• 

:::hcill al<;o haVI! the nght to terminate this Contract with immediate effect b~· 

::iving written notice oi tc"rmination to the other Party at any lime upon or hefcir~ 

th£~ later of (i) sixty (6{]) days aiter the occurrence of any oi the Events with 

rt!Spect to such olher l'arh· (unless such <·!Vent ceases ,,·ithi~1 such period), or (ii) 

sixty (60) d«ys after re•cipt of the Notice (unless such e\·enl ce;1ses within such 

period). 

13.5 R!ghL~ Upn!I T<'m1inali,01. Upon any expiration or termination of 

this Contract all lic~nse..., gi-~nted Lo LICENSEE heretmder shall also Lerm..inate 

and LICENSEE shall in~mediately (i) ~·ease usmg any of QUALC01-1M';; 

Intellectual Pr0pertv and (n) return to QUALCO:tvil\1 or dcstrov all informat.JC>n 

and documentation fum;shed by QUALCOMt-.1. 111e licc~ses granted by 

UCENSEE h<~rnund~!T ~hall survive Lhe termination of this Contrad and remain 

i.n full force and ctfec.i thcwafter until all of LICENSEE's Intellectual Property has 

e,\pired; except that, up0n temi.inalion of this Contract by LICENSEE for nmse or 

e>..piration of this Contract under Section 2, all licenses granted by LIC:El\iSFE 

hereunder sh;ill ;il~o terminate and QU/\LC01vHv1 shall immediately cea~l! ;1sing 

any of LTCENSEE's Intellectual Property. Any termination or expiration \1f thi~ 

Contrnct under this Section i.3 shall not relieve LICENSEE from its ohlit;ahon 

lmdcr Section 14 hereof tn maki;> a reporl or from il-; liability for p«yment 0f 

n)yr1lt1E?S on SubscribeT Units Sold on or prior to the date of such terminiltion r-r 

l'xpiration 1md shall nc.it rre.iudice the right to recover any royalties or other sums 

due or anTUt'd at the time of sud1 termination or expiration and shall not 

prejudice any cau;,c• of action or claim accrued or to accrue on account of any 

breach or ddault. Furthermore, any termination or expiration of this Contr;1ct 

under this Section 13 shall not prejudice the right of QUALCOMM to nmduct ;i 

final audit of the records of LICENSEE in accordance with the provision!j of 

Srcrion 14 hereof. No termination hereunder shall limit the Tights of a Pnrty to 

~ell those Subscriber !;nits in inventory or in process at the time of tem1ination. 

subjecl lo payment of Li-iE' royally applicable lo the :>ale of such Subscriber Urnt..-

and continued wmpliance \\ith the other provisions of this Contract. 

1-!. RECORDS AND ALiDlTS. 

14.1 Records. LTCENSEE shall keep accurate and complete books and 

records concerning any Subscriber Units il may sell under this Contract. A::: 

«pplicable, such boob and records shall include the date' of transaction involvmg 

~'1.lef' ol' Subscriber lln1t$, mdtidmg the mimbcr of items Sold. LICEN~EE :::hall 

fi.im1sh QUALCOM!vl within thirty (30) days aher the end of each calendar 

quarter a certificate. m the fom1 °i1llached hereto as Exhibit E, signed by a 

responsible official of UCENSEE showing the tr<insactions <Jnd corr('Sponding 

amounts dming said calendar quarler and any other inform11Hon as may be 

rt'il!'Onably requested by Ql'ALCOMM. 

Ql'ALCOM\1-llll}.Wf;I CONFIDE:-O'TlAL 23 Ql1ALCOMM PROPRlETAR) 

kc1-L 

CONFIDENTIAL FTC-HUAWEl-0000726 

CX1018-023 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 24 of 31
000097 

No. 00004897 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

14.2 Audits. QUA.I.COMM may, 11C1 mon~ than •>nee each cal~mdar ycilr. 

cam!;! an auditor licen~.,.i;: !n China anJ selected by QL'ALC:O~vlM lo conduct .-.n 

audit on nfasonuble notice .-.f LICRNSEJ:l's ;1p1'lic;bh~ books and records and all 

supporting hiformation to <:ontinn tlu: royalty paid (tr to be paid w 

QL'ALCOMM in accordance with the terms and tnnditioni; sel iorLh in Scdion 

'.i.2 abnve. LICENSEE shall make available applicable personnd to answer the 

rrosomible qllc;;lions oi the auditor an<i shall permit tht! auditor to make and 

rct.1in copies t>f rele\'anl rel.:<•rds soldy for lhl· ;:uditor'!' unalysii; imd racord~. 

Th(· CO!'t r.f such audii ~hall be lxwnl! by QU,\LCOMt-.1, wlleo!> sucl; au<.lit 

detennines thal the LICENSEE has und(~rpaid lhe royalties due hereu.nd1!r by the 

:esser of (a)· more than fin! peL'l:l:'nl (5"!~) nr (b) one huncirt!d tho\!~1id Ur1itgd 

State" dc.".lllars ($100,0lil'): in which ca~e, UCENSEE shall. in addition to o:wm-o; 

!.he ddkiency pins late payment di.1rges, pay the <O~t nf such audit. LICENSE~ 

sh,lil preser\'c and maintain all !-Uch b~iol.•s and recnrdF mqutred for audit !or ;' 

period of five (5> yenrs ail..:r the calendar ~1Urir!er for which the licmk."> ar.r.l 

r.:cords apply (but nol more than two (2) years ait.:r any tennin:ttion of lhi!; 

Contr,ict). All iniormation acquired by tht! auditor and/or QUALCOMM from 

-'ttd' audit !<11illl be considert~d ll1.formali0n subject t0 the terms and rondition." ol 

Section 10. 

1.'i. ,\SSIGNlvfE'NT. 

Exc<~pt as provided in Sccti011 15.1 belO\.\' and !!1 Lhi~ daus~!, LlCEi'<SEl: 

:-hall not nssign lhis Contract ur any right or interest Luid~~r thi!' Contr<1ct. n.;'lr 

Jelegatc Jn}' work or tibligalilm to be performed under thi!'. Contracl {.1:1 

"assignment"), wilht)Ut QUALCOM:lv('s prior wr!tten consent, which cons.::nl 

!'hrJI be at QUALCOMM',; sole discretilin. Any attempt<!Cl assigiunenl in 

contravention of !hi$ Section 15 shall be void and inc:fredivc. Jn. Uw ;>vcn1 

QUALCOMM assign:; this Contract, QUALCO'MJ\'f shall give pmmpt .nolke 

thereof to tlCE..NSEF. .. and Mtch <1ssignmcnt sh,1ll 11i>t dimittish LICENSEE'~ 

rights under this Contract. 

l:'i.1 J\ssi~mnenl in thci_ cvt-nl of Di\fe.stilur~. Upon thirty (30) day~' 

1,·riltcm notice to QUALC01'{M and QUALCOM?l.·1's approval {which appn.,Vi\1 

shall 11,1\ be un:reasonably with.held), LICENSEE ;;hall have lhc 1ight lo ill'l'ig:1 

this co11lract to anr rncce::sm to the entirctv vf L1Ci3NSEE'i.< b\tr.ii,cr.f, for !h.;; 

tni1nufaclt1re and Sale of Subscriber UniL-; so ioni; as such successor i!' a Chim::<.: 

Mrmufocturer. Upon such assignment, such i;ucc6-~0r ~nail be bound by all th•' 

!~rms, condition::: and obligations <1pplk;1ble to UCENSEE hereunder. 

16. COMPLLA.t'\ICE 'WITHAPPLlCABLE REGULA110NS. 

Nothing contained in this Contrart shall require or permit LICENSEE or 

QUALCOMM to do any ad inconsistent with the requirements l)f (a) the 

regulations of the.? United States Depf'lrtment of Commerce, or (b) the fr.ncign 

<~t·». I .CO:MM-l ILIA WEI CONFI 01::.,,; n.~L 24 QUALCOMM !'ROPRll::7ARY 

4eJ~ 

CONFIDENTIAL FTC-HUAWEl-0000727 

CX1018-024 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 25 of 31
·'· 000097 

No. 00004898 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL - 15 U.S.C. § 57b-2 

FTC File No. 141-0199 

asselo; controls or forc·ign transactions controls regulations of lhe United 5tate.s 

'lreasmy Department. or (c) any similar United States law, rt'g1.1lation or 

executive order as the same may be in effect from tune to time. To enable 

QUALCOMM lo export QUALCO.M.M's Intellectual Property or technical data to 

l.ICEN~EE in compliance with the requiremenl> of lhe Export AdminislraLion 

Regufations (EAR), LICENSEE hereby give& it$ ao;su.rance lo QUALCOM.Jv1 that 

LICENSEE will not re-export or otherw1se rlil'clnse. direltlv or indirectlv, any of 

QUAl.COMM's Jnlelleclual Property or "technical datd" n~ceiv~d hom 

QUALCOMM, m.ir allow lhe direct product ther(:'()f to be shipp~)d din~tly •JI 

indirectly lo any country. unJcss permitted by U.S. law in effect at th~~ time of 

such export. QUALCOlvlM shall respond to UCEN5EE·~ rPasonabl(! im.1w.ries 

regarding permittl:'d activities under lhe EAR. 

17. PUBLICITY. 

LICENSEE shilll &ubmit to QUALCOJ\·1:-! a c(1py of all proposed 

;idvertising wherein the name, trademark, code. specifiraticin r>r service mark of 

QUALCOMM is mentioned; and LICENSEE sh<?Jl not publish or u~e such 

advertising without QUALCrnvfM's prior wrilten appro\·.i_I. Snch appro»al shcill 

be granted or withheld a,: promptly a~ possible (usually within ten (10) day:-J, 

ai1d may be ·wilhhelri on[~; ior good cause. 1'\o licenst: is granted by LICJJNSEF. to 

QUALCOMM hereunder '\\"ith rn:-pl'c'.t to UCENSEE's or it5 Affiliates' trad~· 

name, Lradei;nark, code, specification or ~l!rvice m<.uk. ~o license is granted by 

QCALCOMM lo l.TCE~SEE hereunder with respect to QUALCOM1fs or its 

Affili.ites' trade name, tr<1demark, code, specification or service mark. 

18. SURVIVAL C)F OBLIGATIONS. 

Tho P<Jrtie...~· rights and obligations which .. by their natme, would continm· 

beyond the termination, cancellation, or expiratrnn of Lhis Contract, including but 

not limited tn U1ose rights and obligations of the Parlie3 set forth in Section 10 

entitled "INFOR1vf A TIO~,'' ~hall survive >:uch termination, cancellation, or 

expiration. 

19. SEVERABJLITY. 

If any provbiuu in llii:; Conlr,1ct shall be held to be- invalid or 

unenforceable, the remaining portions shall remain in effect. In Lhe e\•ent such 

invalid or unenforceable provision is nmsidered an essential c-lement of this 

Contract, the- Parties shall promptly negotiatl" a replacement provision. 

20. NON-WAIVER. 

No waiwr of the terms and conditions oi this Contract, or U1e failure of 

either Party strictly to enforce any such term or condition on one ur more 

25 1.,!l:ALCOMM PROPRIETAR) 

-4- c1~ 

··-

·, · .~ {'~~~{L,t,~~/?:1~~t~1i< ~,:: -; .. 

CONFIDENTIAL FTC-HUAWEl-0000728 

CX1018-025 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 26 of 31
000097 

No. 00004899 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

occasions shall be construed as a waiver of the same or of any other term or 

conditi()n of lhis Contract on any other occ.asion. . 

21. NOTICESAll notices, n•qm;;sts, demands, C<".•Mi.'nb, agreements m1d olh~r 

wrnmu,i1ic11lions .rt-quited or permitk'<i to be givt::n 1.rncler this Conlrnct shall be u1 

writing and shall !'w mn.ilc·d to Um Pnrty In whom notice is to be given, bv 

facsimik•, and rnnfirmed by fir::.t dnss mait posl:ilg'' prepaid, iind prnpcrl~· 

addresscu as fnll11ws fin which case such nolin:· shall be deemed to have be«n 

duly given on the day the Mtice is first received by the Party): 

QUALCO.!vlM Incorporated 

'i775 Morehouse Drive· 

Sa.riDiego,CA 92121-1714 

l'rnted States of Americn 

Facsimile No.: (858) G58-2503 

Telephone No.: (858) .'iS7-l 121 

,.\ttn: President 

wirh n copy to: Gcncrdl C0unsel 

Huuwe1 Tcdinnlogics Co. Ltd. 

I luadian R&D Building, Huawci Base 

Bantian Longgang, Shenzen 51BJ29 

China 

Fac.~imile No.: (86) 755-28787822 

Telephone No.: (86) 755-28788899 

Attn: \<fr. Song Liuping 

The above addresseo; can be changed by providing notice to the other 

PMty in accordanrc with this Section. 

"~· PURLTCATION OF CONTRACT. 

Except as may olherwi~e be required hy law or a<; rea:mna\1ly neces~ar\' 

ior performance hereunder, each Party shall kcc·p this Contr.ict ;ihd its prcivlsirms 

confidential and &hall not disclo~c this Contmcl or its prm•isions ·without first 

ubt<1ining the written comi=nt of the other l'arty, which consent shall not be 

unn:asomi.bly withheld. The confidentiality obligations hereunder do not apply 

to the existence of this Contract or the foci that QUALCOMM and LICENSEE 

h<l\'e executed this Contrac;t. but do apply to the term~ and rnndition!: nf rhis 

Contract. Any p:r.ess rul!!a"ii' or other announcement by either Party concerning 

the entering into of thi~ Contract shall be subject to the prior written approval of 

cl her Pilrty, which approv.:il shall not be unreasonably withheld. 

QlJAI .COMM-MU/\ Wei CONflDE.'-TIAI,. 26 QUALCOMM PROPRJETARY 

)t- ~l, 

- -~------------ -~ _'--

CONFIDENTIAL FTC~HUAWEl-0000729 

CX1018~026 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 27 of 31
000097 

HUAWEI TECHNOLOGIES CO., l TD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

23. APPLICABLE LA\V;D!SPUTE RESOLUTION; VENUE. 

Thb ConlrilL"t shtill be cuastn.1ed nnd enforced in at·cordance with the· Jaws 

.~i thl.' Stale ol f;ilifornia i,·ithout regard to conflict of hm:; principles. However, 

\·: hi:'rever mrnncili1bl.:> nothi1.1g contaitled herein ~halt he rons-lrucd l.l"I be in 

i:f.'1Ul.icL with or in violation of applicable law of the PeopJe'..s Republic of China. 

\\'hen pedorrni11g their ol-Ug.ations under this Contl'att in Chin11. the P11rli_t>-~ $hall 

abide b_y th'' app1icilble !aw:::o .:md regulations of U1(; People's Republic of China. 

Tht> Pilrt1es wi_ll attempt in good faith to resc•h-e pr-0mptly <my dispute, 

ci;iim t"•r •'.t>nlwvers}' iJ1·ising out of or relating to IJ1ls Contract, or the bread1 or 

\",)1idity hereof (il .. Di1<pute"} by nep;oHutions b..:lWl'm i:-;..e..:utive:< of lh!! Parlieo 

who h,we llil! authorlly h" settle U1c Dispute. If tht! Di.~putc ii: not l'esolved 

withm thirl)' (::10) days oi ;1 Party's written requ1?sl for 1,egnti;ition; either Party 

me1y lnili•~lc arbitration M• hereinafter provided. 

A P11rty de.siong to conurmncc arbitration sh~ll provide written notice to 

the other Party i:elling forth the Dispute(!>) to be arbitrated. Within Len (10) days 

of rL'CCipt of such written notice, the Parties will attempt in good faith to reach 

a~n:L!ment on an irnp<Utial arbitrator. In the i?Vent the Parties are unnbl~ to agree 

upon Jn arbitrator within thirty (30) days of U1e abon? writll'n notice, the 

arbilralor ~hall be sell:Ctt>d bv L11e lntemational Chamber of Commerce (or 

another ;;1milar organintion if the International Chamber of Commerce is nnt 

,w,u!i!ble). fhi.? sdfa":ti:'ci nrbilralM shall be ilnpm·tial. ~o person shall act a~ • .m 

arbitr,11~'" if .sttdt pcr!'on pos!'\iSscs any p?.sl, pre.!-i.mt, C\r promiSt'd future 

ecom;mii:;, business, 11r financial intC!_rest, direct nr indirnct, in any Pnrty herelC\ 

finduding, without Hmit;ition, .1JJ p<trb1ers, officers, directors, cmplClyees. or 

sh.:treholders Lherl:!of). The Parlies will shRre equally tht> fee.; nnd expcns~ of the 

;;rbilri.'llur. 

The arbitration hearing shall commence ln Singapore within 60 days of the 

appointmc~nt of t]1e arbilrnlor. The arbitration proceedings shall be conducted in 

the English language. 

The arbitration hearing shall be C(Jndudt'd i.n •-u:t.:ordanc:e Vlith the 

Arbitration Rull::'s of the International 01Jlmber of Commerce. The arbitrator 

shall award attorneys' fees and costs to the prevailing Party. The arbitrator shall 

have no authorlLy to make any findlng or award as to the validity or 

cnforceabilily of any patent. 

The final award of U1e arbitrator shall be rendered in writing 11nd &igned 

br the arbitrator. The fina] award shall be entered within thirty (30) days of the 

c~munenccmenl of U1e arbitration hearing. Each Party agrees to abide by the 

arbilration ;iw11rd. and Lo the enforcement of the arbitration award in Singapore 

Ql'J,LCO~lM-1 flJAWEI CONFll>EI-. f!AL 27 Qt:ALCOMM PR.OPRIETA.RY 

A" c1~ 

- ·-=----~"'- . ·- , . .., 

No. 00004900 

CONFIDENTIAL FTC-HUAWEl-0000730 

CX1018-027 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 28 of 31
000097 

No. 00004901 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No. 141-0199 

and <:onsenL-; to personal jurisdiction over itself by the comL~ of Singapore ~olely 

for :.-uch purposes. Each Party further ngrees that judgment may be entered 

upon the award in any rou1·\ 1)f competent jurisdiction. 

1-i. WAJVER OF SOVEREIGN lMMUNfrY. 

Each Party acknowledges and agrees thal the formation and performanc..-c 

of this Contract is a transaction whkh is commercial in nature rilther than 

governmental or public and therefore uneondi~i~1nally acknowledges ;md agrees 

that it is not entitled to any right of immur1Hy l)n Uw grounds of :;overcignty or 

otherwise with respect to transactions cont~'mplatt:d by U\is Contra<'.l or m any 

legal action or proceeding arising our of or rdating to thi<; Cuntract. 

25. BREACH OF CONTRACT. 

Exn?pt.a~ otlwnvbc limited or set forth hcri::in, in the uvenl of a breach by 

0itlu:r Party of its ()bligations unde>r this Contract, lhe nonbmaching Party !>h<:li 

be entilk.-d to seek all applicable 1·ernedie:;. In addition. QUALCOMM may 

c.h,1rge l..lCENSI!E a late charge, wilh respect to •my am1:runt~ th11t LlCENSEE 

••wes hernnnd.::r and fail.-; to pay or\ or beforn the due dat.:, ir'l an amoimt equal to 

the !t~!>!;Cr or 0111:' and un•:-half porcenl fl 1/2%) per nwnth. pm-r;11<;>d, or the 

1'.:1<1ximum ilnl1Jltnl pcnmtted by law. 

26. AlTORNl:YS' FEES. 

ln the event of any proceeding to enforce the provi5ions oI thfa Contract, 

the prevailing Party (as determined by lhe arbitrator or the court) shall he 

entitled to reasonable allorneys' fees as fixed by the arbitrator or the court. 

27. ENnRE AGREE1vfENT. 

The terms .1nd conditions contained in this Contract super,,<'de all prinr 

and contemporaneous oral or written understandings bdween llw P<1rties with 

respect to the subject matter thereof and constitute Lhe entire agreement of the 

Parlie.'l with respect to such subject matter. Such terms and conditions i;hall not 

be modified or amended except hy :-1 writing $ignecl by ilUthorized 

representatives of both Parties. 

28. INDEPENDE1'.lT C01'.'TRACTORS. 

TI1e relationship b12:tv.·een QUALC01'Dv1 ;md LlCl::NSEE is that o{ 

independent contractors. QUALCOMM and LICENSEE are not jomt venturers, 

partners, principal and agent, master and servant, e_mploy(!f or cmploy<'l'.', and 

have no other relationship other than independent t:ontTncling parties. 

LICENSEE is executing this Contract solely on behcilf of itself and its J\ffiliates 

Ql.IALCOMM-HUAWEI CONFlDf:'i 11.\l 28 Ql!,\LCO~l~1 PROf'RlETA!n 

~ tft\. 

CONFIDENTIAL FTC-HUAWEl-0000731 

CX1018-028 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 29 of 31
No. 00004902 

... .., 

HUAWEI TECHNOLOGIES CO., LTD. 

CONFIDENTIAL-15 U.S.C. § 57b-2 

FTC File No.141-0199 

and is nol acting on behali of, and does not represent. anr other company or 

t>ntity or any goverrnnent agency. 

29. FORCE Iv1AJEURE 

Neillwr Party shall be in default or liable f<Jr any loss or .damage: r<!sulling 

from delay" in performance or from foilur(' tu perform or comply wilh·tet.l'tnS of 

this Contract (other than the obligation to mak.: payments, which shall not Lw 

affected by this pro,·ision) ·due to .my uniore:...-.eabll!', unavoidable and 

unpreventable ca1t~e5, which causes include bul arc not limited to Acts of God or 

Lhc public enemy; riot:, <1nd insurrl'dions; 'War; fire; strikf:'S and oth~T labcir 

difficulties (whether or 11,)t the Party is in a pos-ition to concede to :-uch 

dem<Jn,ds); .ctnbilrgoes; judicial aclion; lack of or inability to obtain export permil~ 

or upprovnls; nnd acts oI civil or mililary authorities. 

TN WITNESS WHEREOF, the Pilrlies her<!tc.> have cnwoed this Contract to 

be (!Xecuted ns of the Effecti\"\! Date." This Contract shall he exe01ted in English 

<mci Chinese ond may be Sl&'Tied in counterparts. In the event of any conflict 

bt'lween the Chinese and English versions, the Engli5h version of lhL'l Contraci 

shall be controlling. 

J fo~wei T edmologies Co. Ltd. 

BY:_l_i:. ~ t--

TITLE:_ l/1'ce fr:u/v(~ 

Print Nilme:._5i_~_, +-q_L.t_'j+-~--

Witn(•:;s:J~]?'"""''----

f~l \lCUM \1-1 II I,\ WEI CO~FIDE!' l JAL 29 Ql:Al.COMM PROPRJJIT,\H'l 

)J; ti'v 

CONFIDENTIAL FTC-HUAWEl-0000732 

CX1018-029 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 30 of 31
HUAWEI HIGHLY CONFIDENTIAL- OUTSIDE ATTORNEYS' EYES ONL 

Huawei's Proposed Term Sheet to Qualcomm 

Items 

Licensed Patent 

Grant of License 

'' .,,,: :,

0 Royalty Fee 

Other Products 

" 

Terms and Conditions 

• SEPs essential to wireless standards set by 3GPP but excludes any SG wireless telecommunications ·.··. Juatworkstandard (' ~§.tatidard") ·. ... · · · · .... , ,, ~ , , , , .... 

• Huawei and its Affiliates·grant Qualcomm and its Affiliates a world-wide, irrevocable, non-exclusive, 

non-transferrable and:non-sublicensable license to make, have made, use, sell, import, offer for sale or 

otherwise dispose of Licensed Products 

< ', 

• . Huawei is open to discuss licenses for other types of products that comply with the Standard upon 

Qualcomm' s request and relevant royalties are subject to further discussion between the parties 

HUAWEi' TECHNOLOGIES co., LTD. Page 1 HUAWEJ 

HUAWEl-QUALCOMM-0000536 

Case 5:17-cv-00220-LHK Document 1228 Filed 01/10/19 Page 31 of 31