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Huawei wants Verizon to pay $1B in patent licensing fees

Huawei wants Verizon to pay $1B in patent licensing fees

The latest development in the current US-China trade dispute is that Huawei is reportedly pushing for Verizon to pay for over 200 patents, to the tune of $1 billion.

According to the New York Times, two people briefed on the matter have revealed that Huawei is calling for the US wireless giant to pay licensing fees on 238 patents. The Chinese company accused Verizon of violating these patents in a letter this spring, which The Wall Street Journal has also reported on, in which Huawei wrote "we trust you will see the benefits to taking a license to our patent portfolio". Since then, several emails, calls and meetings have taken place about the matter. Even just last week, there was a meeting in New York about the claims, so this story is still developing as tensions escalate between the US and China.

While Verizon is not a customer of Huawei and doesn't purchase any Huawei products, it does rely on at least 20 vendors which use technology owned by the Chinese company. As such, Huawei's patent claim is with regard to a number of properties like networking devices and wireless technology. Licenses are typically paid as a percentage of sales on a per-subscriber basis, according to the Times. In total, the claims would exceed one billion dollars, according to their sources.

Verizon spokesman Richard Young had no comment on the letter, but did say to the Times that "these issues are larger than just Verzion," and added that "[g]iven the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and international concerns." Huawei, on the other hand, declined to comment on the matter.

For more on how all this came about, be sure to check out our article summing up the Huawei vs. USA trade dispute thus far.

What do you think about the current situation with Huawei? Let us know in the comments!

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3 comments

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  • CJ Brown Jun 16, 2019 Link to comment

    Huawei is leveraging their ability to bully an American Co. (not like I'm defending Verizon Wireless, cause they're guilty of enough against consumers!) and it's not going to work ... not even if Huawei tries to go after contracted vendors of Verizon. 🤣


  • Kent Shephard Jun 14, 2019 Link to comment

    Interesting


  • storm Jun 14, 2019 Link to comment

    I'm not seeing the merit of huawei's claim. The fee should be paid by Verizon's vendors. Verizon would indirectly pay the fee in their payments to the vendor.

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