Huawei Demands 5G Patent Royalties from Samsung and Apple... $2.5 Cap Per Device

[Asia Economy Reporter Joselgina] Chinese company Huawei has decided to demand 5G mobile communication patent royalties from smartphone manufacturers such as Samsung Electronics and Apple. The royalty cap per smartphone is $2.50.

According to Bloomberg and other sources, Song Liuping, Huawei's Chief Legal Officer (CLO), announced this at a forum held at Huawei's headquarters in Shenzhen, China, on the evening before, under the theme "Protecting Intellectual Property (IP), Leading Innovation." He stated, "We will enter negotiations on patent royalties and mutual patent agreements with Samsung Electronics, Apple, and others," calling it a "natural" step. He emphasized that Huawei intends to collect patent royalties despite the US administration's sanctions against Huawei.

Ding Jenshin, Huawei's Head of Intellectual Property, confirmed that the royalty cap per smartphone is $2.50. This is a relatively low level compared to competitors such as Qualcomm, Ericsson, and Nokia.

Huawei expects to secure $1.2 billion to $1.3 billion from patents filed and license fees from 2019 to 2021. These funds are expected to be reinvested in Huawei's 5G technology research and development. However, Bloomberg added that Huawei did not disclose how much of the estimated total fees are attributable to 5G-related patents.

Although the level is relatively low compared to competitors, the possibility of legal disputes over smartphone patents cannot be ruled out. The stance of the US administration, which has imposed sanctions on Huawei, is also a key factor. IT media PhoneArena reported, "Huawei argues that the US administration's trade sanctions, which have blocked transactions with US companies, should not prevent the collection of patent royalties," adding, "Just as Samsung Electronics and Apple engaged in a seven-year legal battle over smartphone patents, another dispute could arise."

At the event, Huawei published the "2020 Innovation and Intellectual Property" white paper, stating that as of the end of 2020, it holds more than 40,000 family patents worldwide and over 100,000 valid patents derived from those patents. Ding Jenshin emphasized, "Huawei's success is the result of long-term investment in innovation and R&D."

This content was produced with the assistance of AI translation services.