Huawei starts demanding 5G patent royalties on Samsung Electronics and Apple

[Photo provided = Huawei]

Bloomberg News in the U.S.A. reported on the 17th that Huawei the Chinese mobile carrier company which is considered the most advanced mobile communication in the next generation (5G) started demanding 5G patent royalties on Samsung Electronics and Apple.

According to Bloomberg News Song Liuping the chief legal officer (CLO) in Huawei said “Huawei will prepare for the patent royalties and mutual patent negotiation with Samsung Electronics and Apple” and “It is natural to get paid for patents.”

Ding Jianxin the director of Intellectual Property in Huawei said “We will put a ceiling on $2.5 per one unit of smart phone” and “It is way lower than other competitors such as Qualcomm Ericsson and Nokia.” Actually Apple pays $7.5 per one unit of phone to Qualcomm.

Patent royalty profits are expected to give a little bit of breathing space to Huawei. Mobile phone manufacturing sector in Huawei is practically open without any business due to the U.S. ban on semiconductor exports. In this situation patent royalty profits would be a precious profit source. Huawei patent license revenue in 2019~2021 is assumed about $1.2~1.3 billion dollars. However 5G related patent royalty is not revealed specifically.

Patent royalty profit brings in a good income for companies. ‘Patent dinosaur’ Qualcomm has been collecting a large amount of patent royalties from smart phone manufacturing companies such as Apple. A while back Apple had fought in court for 2 years against Qualcomm for its excessive demand for a patent royalty of $7.5 per smartphone.

Huawei is the largest patent holding company in the world. As of the end of last year Huawei has more than 40000 patents and more than 100000 valid patents spun off these patents. Especially Huawei has ranked the first place overpoweringly in 5G patent field. According to the report from IPlytics the German patent specialized market research company Huawei holds 15.4% of worldwide 5G patents and is chosen as the largest patent holding company.

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