Increasingly excluded from international telephony and infrastructure markets, Huawei plans to monetize your patent portfolio more aggressively. The company said it would charge phone makers like Apple a “reasonable” royalty capped at $ 2.50 per device to license its 5G patent collection.
To put these costs into perspective, it’s less than competitors like Nokia and Ericsson currently charge companies for access to their 5G technology, and much less than the $ 7.50 per device costs that have led to years of dispute between Apple and Qualcomm. Huawei estimates that the strategy will help it generate up to $ 1.3 billion in additional revenue between 2019 and the end of 2021.
According to CNBC, it is estimated 18.3% of Huawei’s 5G patent families belong to the Standard Essential Patent category. As the name suggests, these are essential for wireless network standards such as 5G and LTE. In many cases, phone makers cannot make a phone that can access these networks without licensing some of these patents. And as it happens, Huawei used 5G-related SEPs the most of any business in the world.
Historically, Huawei has not gone out of its way to license its patent portfolio – or, for that matter, use it to litigate competitors. But that was before the Trump administration put the company under the responsibility of the Commerce Department. list of entities, preventing American companies (and even some outside of North America) to work with Huawei. Under former President Trump, the United States also pressured allies like the United Kingdom to stop buying network equipment of the company. These measures have had tangible activity for Huawei, even in its own country of origin.