Huawei has a plan to compete with 5G without being able to sell its 5G phones anywhere. The technology company announced today that it intends to seek royalties from companies such as Apple and Samsung in exchange for the use of its patents, according to Bloomberg. Huawei believes it can close licensing deals despite sanctions in the US, and it plans to use its earnings to invest even further in research and development.
Huawei acquires patents on new technology while developing the larger 5G standard – along with companies such as Qualcomm and Ericsson – which, according to CNBC, are needed for interoperability between different 5G networks. “Huawei has been the largest technical contributor to 5G standards,” Jason Ding, head of intellectual property, said in a statement. The company plans to charge up to $ 2.50 per phone using its 5G patents. Huawei believes that its patent business should not be affected by continued sanctions, Bloomberg notes.
The company’s patent earnings are already huge. Thing estimates Huawei will earn between $ 1.2 billion and $ 1.3 billion from patent licensing between 2019 and 2021. Huawei also plans to charge less than other manufacturers such as Nokia and Ericsson for access to its 5G standard patents (SEPs), according to CNBC.
Huawei is still banned by the Department of Commerce from doing business in the U.S. over concerns about espionage. The company’s network technology also has yet to be removed and replaced in the US and UK. Aggressive pursuit of patent rights seems like a way to take advantage of the 5G enterprise Huawei has already built. And without any indication that Biden’s government will renegotiate with the company or reverse the ban, it may be necessary.