Huawei and Oppo, the world’s fourth-largest smartphone maker, have signed a “patent cross-licensing” agreement covering key patents for the cellular standard, including 5G.
Huawei has a huge portfolio of more than 100,000 patents worldwide and is one of the leading patent holders for 5G technology, the next-generation ultra-fast mobile internet that is seen as key to the development of future industries such as artificial intelligence and autonomous cars.
When a new generation of cellular technologies is developed, it is necessary to create so-called global standards. These are the protocols, specifications and design that enable 5G networks around the world to communicate and allow smartphones to “talk” to these networks. It is up to industry organizations to create them, and companies like Huawei are contributing to this by developing technologies that are then patented.
Huawei has historically not been aggressive in monetizing these patents against some of its competitors such as Nokia and Ericsson. However, in 2019, the US implemented a series of measures (including an export blacklist) to cut off Huawei from obtaining critical semiconductors needed to manufacture smartphones and some other products. This destroyed the profile business of the company, which was once number one in the world.
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Last year, the Chinese tech giant said it would sell its technology to other companies through patents. The company previously said it expects to generate between $1.2 billion and $1.3 billion in revenue from licensing its intellectual property between 2019 and 2021. Huawei said it had achieved expected intellectual property revenues for 2021, but did not provide an exact figure.
5G has become another part of the technological battle between the US and China. Both countries see it as a critical technology. The US has expressed concern that Huawei poses a national security threat and has pressured other countries to ban the Chinese firm from accessing their 5G infrastructure. Huawei has repeatedly denied that it poses a threat to national security.
The US has also recently imposed a blanket ban on the supply of telecommunications and video equipment from China, including Huawei products. The Federal Communications Commission (FCC) has announced that it will no longer license certain products of Chinese companies — they will no longer be able to legally import or sell telecommunications and video equipment. The list (which lists prohibited products and services) currently includes communications equipment manufactured by Huawei Technologies, ZTE Corporation, Hytera Communications, Hangzhou Hikvision Digital Technology and Dahua Technology (and their subsidiaries and affiliates).
Source: CNBC
