Free reverse licensing has to mention Qualcomm. Taking Qualcomm as an example to explain is easier to understand than the definition.
Qualcomm has set up a "free reverse license" clause in the license contract, which requires equipment vendor A to pay a fee to obtain Qualcomm's patent license and at the same time, it must reverse its own patent (equipment vendor A's patent) for free. Licensed to Qualcomm. After equipment manufacturer B purchases Qualcomm's baseband chip, according to the "rights exhaustion" principle, equipment manufacturer A can no longer claim rights to equipment manufacturer B on its patent. Therefore, buying Qualcomm's baseband chips solves all patent problems, which is equivalent to spending money to buy Ping An, which in turn promotes the sales of Qualcomm baseband chips. The prerequisite for buying Qualcomm baseband chips is to pay the license fee and provide Free reverse licensing.
In this way, equipment manufacturers are willing to purchase Qualcomm's baseband chips not only because the baseband chips have excellent functions and good quality, but also because they can avoid patent prosecution by other equipment manufacturers.