by MA Yueran

China's photovoltaic sector has recorded its largest disclosed patent licensing agreement to date, after Aiko Solar, a Chinese solar-maker, agreed to pay 1.65 billion yuan (US$237 million) to Maxeon, a subsidiary of TCL Zhonghuan, for back-contact (BC) solar cell and module patents.

The deal, announced by both companies late on February 6, grants Aiko Solar the right to use all BC-related cell and module patents that Maxeon has independently or jointly owned in the past and will acquire over the next five years, covering markets outside the United States. No cross-licensing is involved.

BC technology, which places all electrical contacts on the rear of the cell, has become a focal point of patent disputes.

The license fee will be paid in instalments over five years, with 250 million yuan due in the first year. TCL Zhonghuan said late payments would incur a daily penalty of 0.05%. The total amount is fixed for the entire term and will not be adjusted based on sales volumes or market conditions.

It is the largest patent licensing fee publicly disclosed in China's solar industry, where most disputes in recent years have been settled privately without revealing financial terms.

Maxeon had previously sued Aiko Solar and its subsidiaries in German and Dutch courts in 2023. People familiar with the matter said prolonged litigation had been costly for both sides, making licensing a more pragmatic resolution.

In a statement to Jiemian News, Aiko Solar said the agreement covers nearly 1,000 BC-related patents. The company expects cumulative shipments over the next five years to exceed 165 gigawatts, putting the average license cost at below 0.01 yuan per watt.

It has already begun charging both cell and module customers a 0.02 yuan per watt patent fee, prompting price increases across its product range. At utility scale, that charge translates into millions of yuan in additional costs.

Aiko Solar said the licence would secure global compliance for its proprietary ABC technology, its in-house BC-based architecture, and support overseas expansion. The company added that it plans to expand patent licensing as a new revenue stream.

The settlement is also expected to clear a hurdle to Aiko Solar's overseas sales. Some international customers had previously delayed purchases over patent risks, and the company said the agreement would allow smoother expansion in non-US markets.

Under the agreement, both sides will withdraw or terminate all ongoing or pending legal proceedings related to the licensed patents and products and commit not to take actions that would conflict with the deal during its five-year term. The license is non-exclusive, allowing Maxeon to grant similar rights to third parties, and future disputes could still arise if the patents remain valid after expiry and renewal talks fail.

For TCL Zhonghuan, the company said the license supports its push toward moderate vertical integration and strengthens its position in the BC cell and module segment.

Patent disputes have intensified across China's solar industry, particularly around next-generation technologies such as BC and TOPCon. Maxeon holds a deep portfolio of BC and shingled-module patents that many Chinese manufacturers must contend with when expanding abroad.

Both companies have struggled during a prolonged industry downturn. TCL Zhonghuan expects a narrower 2025 net loss of 8.2 billion to 9.6 billion yuan, while Aiko Solar forecasts a loss of 1.2 billion to 1.9 billion yuan, citing improved cash flow and rising ABC module shipments.