Huawei presses Verizon to pay $1 billion as patent licensing charges

Amid clash with the U.S. government, the Chinese company says US-based Verizon is liable to pay fees for more than 230 of its patents.

Huawei, the Chinese telecommunications equipment company recently demanded $1 billion patent licensing fees from an American wireless giant, Verizon. The fees have been demanded for the use of 238 of Huawei’s networking-gear patents, cite sources.

Reportedly, the U.S. president Donald Trump’s dispute with China has been extended to Verizon, which relies on other companies, that use technology owned by Huawei. The list of patents includes internet of things technology, core networking gear & wireless infrastructure.

For the record, Huawei is known for its networking equipment and supplies smartphones to over 170 nations. The company has become a pioneer of China’s technological expertise. But the recent executive orders from the American president has crippled Huawei on many fronts. The orders prevent American companies from selling hardware or software components to Huawei.

Beijing retaliated by warning American tech-giants such as Dell and Microsoft about facing retribution if they cooperate with Trump administration’s ban on sales of American technology to Chinese companies.

As per credible sources, Huawei has sued the federal government of America by claiming that the company had been unfairly and incorrectly banned as a security threat and the U.S. government has provided no evidence to prove the company as a security threat.

Huawei has been shut out of the American smartphone market and the Chinese tech giant is trying to extract revenue from American companies with the patent claims.

As per sources close to the matter, Huawei and Verizon representatives met in New York, last week, to discuss whether the gear could infringe Huawei’s patents. Verizon spokesperson reportedly said that this issue moves beyond Verizon as any issue involving Huawei has implications on entire industry. The issue leads to a matter of national and international concern.

Huawei and Verizon declined requests for comment on the matter, report sources.

Source credits: https://www.nytimes.com/2019/06/12/technology/huawei-verizon-patent-license-fees.html

https://www.cnet.com/news/huawei-is-reportedly-chasing-verizon-for-1b-in-patent-licensing-fees/