Thursday, 19 September, 2019

Huawei reportedly urging Verizon to pay fees on over 200 patents

Huawei is demanding $1bn in patent fees from Verizon Huawei demands $1bn in patent fees from Verizon
Russell Knight | 15 June, 2019, 04:13

A new report from Reuters claims that Huawei is in a patent dispute with Verizon for unregulated use of an estimated 230 patents. The report also claims meetings between Huawei and Verizon representatives already took place in NY but neither side give out details of the discussed topics.

According to the South China Morning Post, the patents cover network equipment for more than 20 of the telco's vendors and extend from core network equipment.

Verizon should pay to "solve the patent licensing issue", said a Huawei intellectual property licensing executive to The Wall Street Journal.

We have no comment regarding this specific issue because it's a potential legal matter.

"These issues are larger than just Verizon", a Verizon spokesman told Reuters. He also added, "Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and worldwide concerns". If Verizon refuses to pay citing that the patents are not applicable, or the amount requested is beyond their value, China could use this as argument fodder in any subsequent trade negotiations or court hearings.

The dispute comes amid a growing trade and tech feud between China and the U.S., with the licensing fee demand seen as being more about the geopolitical battle between the two nations.

In a letter dated March 29, Huawei wrote to Verizon that "we trust you will see the benefits to taking a license to our patent portfolio", according to The New York Times.

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The CNBC recently released a news report stating the Chinese giant Huawei's another attempt to question its ban in the U.S. over national security grounds during early Thursday.

The US Government placed Huawei and 68 of its affiliates on its Entity List on 16 May, meaning that the company would have to seek permission to purchase any American components it needed to manufacture its products.

While Verizon is the first target for Huawei, other US telcos, including T-Mobile, Sprint, CenturyLink and AT&T, could be in the cross hairs as well.

Four days later, Google announced it was cutting off Huawei's access to future updates of Google's Android and Google Play Store.

Credit rating organization S&P Global said Wednesday that the impact on the tech industry of the Huawei ban in the United States "could be wide ranging", including stymieing the growth of American tech companies.

The US imposed ban on Huawei might have put the company in turmoil in the global market, but the company is definitely not giving up.

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