Huawei demands 5G patent fees from Samsung and Apple

Input 2021.03.17 11:03

Bloomberg News reported on the 17th that Huawei, a Chinese information and communication technology (ICT) company, has begun requesting patent fees related to 5G (5th generation) mobile communications from Samsung Electronics and Apple.



Huawei headquarters building in Shenzhen, China. /Twitter capture

Huawei is the world’s largest patent holder. As of the end of last year, Huawei has more than 40,000 patents worldwide and more than 100,000 valid patents derived from this patent.

In particular, it is overwhelmingly ranked first in the world in the 5G sector. According to a recent report by IPlytics, a German patent market research firm, Huawei has 15.4% of 5G standard patents in the world, ranking as the largest patent holder.

According to Bloomberg, Huawei’s Chief Legal Officer (CLO) said, “Huawei will negotiate patent royalties and mutual patent agreements with Samsung Electronics and Apple,” at a press conference held the day before at Huawei’s headquarters in Shenzhen, Guangdong Province, China. It’s natural to get paid,” he said.

Huawei’s patent license revenue from 2019 to 2021 is estimated to be about 1.2 billion to 1.3 billion dollars (1.36 trillion to 1.4 trillion won). However, the amount of 5G-related patent usage fees is unknown.

Huawei’s intellectual property manager Ding Jian-shin said, “We will set the upper limit on patent royalties per smartphone at $2.5” and “this is lower than that of competitors such as Qualcomm, Ericsson, and Nokia.” In fact, Apple is paying Qualcomm $7.5 per cell phone.

The revenue from patent fees is expected to relieve Huawei’s breathlessness, which has been confronted by the US ban on semiconductor exports. Huawei’s mobile phone manufacturing sector is virtually’closed’.

Patent revenue is an important source of revenue for ICT companies. Qualcomm’Patent Dinosaur’ has been collecting large amounts of patent usage fees from smartphone manufacturing companies such as Apple. Earlier, Apple fought in court over two years, saying that Qualcomm’s request for a patent fee of $7.5 per smartphone is excessive.

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