Huawei Technologies Co Ltd says it will start charging Apple Inc and Samsung a reasonable fee for access to its slew of wireless 5G patents, developing a new revenue outlet by displaying its global lead in the next generation networking.
Chief Legal Officer, Song Liuping, said that Huawei would negotiate rates and potential cross licensing with Apple and Samsung Electronics Co Ltd. The company is determined to remain focused on monetization, with a promise to charge lower rates than their rivals like Qualcomm Inc, Ericsson AB and Nokia Oyj.
“Huawei should rake in about $1.2 billion to $1.3 billion in patent and licensing fees between 2019 and 2021,” according to a report from Bloomberg News.
The company’s capping per-phone royalties of $2.5 could pose a potential threat to Qualcomm. Apple chastised Qualcomm’s unfair $7.50 royalty from every iPhone, which Qualcomm stated, in its defense, is a small amount to pay for fundamental technology.
Huawei plans to divert the patent fees into research and development to maintain moat in wireless networking versus Ericsson and Nokia. China’s largest technology company by revenue continues to fight for market share amidst the rapidly evolving field of connected cars, smart homes, and robotic surgery.
Sources explain that, “Global regulators and courts continue to devise patent valuation methods for essential technology, including owner’s limits to the use of those creations. The patent disputes are likely to intensify as sales of devices using 5G are estimated to grow to $668 billion globally in 2026 from just $5.5 billion in 2020.”