Menu
KrASIA
News

Verizon may need to pay Huawei more than USD 1 billion in patent licensing fees

Written by Luna Lin Published on 

Share
Verizon dropped sales of Huawei phones last January.

Huawei is asking US telco Verizon to pay licensing fees for more than 200 of its patents, the Wall Street Journal reports, citing people familiar with the matter.

Huawei contacted Verizon in February, alleging that they had violated 238 patents held by the Chinese telecommunications hardware maker. The company told Verizon that they should “solve the patent licensing issue.”

“We trust that you will see the benefit of taking a license to our patent portfolio,” the letter quoted by the WSJ read.

Though Verizon is not a client of Huawei, the US wireless carrier network relies on vendors that use technologies owned by the Chinese company. Huawei’s claims could add up to more than USD 1 billion in fees, according to unnamed sources that spoke to the New York Times.

The potential legal dispute between the two companies comes amid an escalation of a trade war between China and the United States. The US government has banned Huawei domestically and is also championing a global campaign to bar the Shenzhen-based company from participating in the 5G markets of its allies.

Last January, Verizon dropped its plan to sell Huawei phones, reportedly due to pressure from the US government, according to Bloomberg.

Share

You might like these

  • News

    Xiaomi stock dives after blacklisting by US

    By 

    Song Jingli

    15 Jan 2021    03:20 AM

KrASIA InsightsKrASIA Insights

  • Chinese-owned B2C digital brokerage Webull’s proactive government relations, combined with a low-key marketing strategy, has allowed the company to gain traction in the US.

    Insights

    The bull chasing the bandit: Webull takes on Robinhood

    By AJ Cortese

    18 Jan 202103:37 AM

Most PopularMost Popular

See All