Huawei got barred from trading and working with US companies in allegations that they have a connection with the People’s Liberation Army, as the founder of the company used to be an engineer there.
Like other telecommunications companies like Ericsson and Nokia, Huawei also started developing their own 5G tech, which other companies can use. However, they recently announced that if companies wanted to use their patents, they have to pay for royalties.
Huawei will start negotiating with big companies like Apple and Samsung for potential cross-licensing. The company aims to get paid but will charge lower than their rivals like Qualcomm. The company expects to receive around US$1.2 to US$1.3 billion in patent and licensing between 2019-2021.
The company is capping US$2.50 per phone royalties, according to Huawei’s head of intellectual property Jason Ding. In comparison, Qualcomm charges US$7.50 per phone royalties.
In terms of its US Sanctions, Huawei said that this should not interfere with their ability to cross-license with US companies, as the patents are publicly traded. However, with 5G being more common in the future, dispute with the patents may cause a rise in tension between the US and Huawei.