Since being barred from mobile access and other features, Huawei has faced many difficulties in its business venture. Now, the electronics conglomerate based in Shenzhen, Guangdong in China wants to charge a $2.50 royalty fee per smartphone for its 5G patent.
Huawei Starts Charging Royal Fee for its 5G Patent
The companies targeted by the fee will now pay the Chinese company for their next generation of smartphones.
The main two companies involved in this negotiation are Samsung and Apple, which both regularly release new devices. Huawei Technologies executives said that the imposed royalty fees for its licensed 5G patent are "reasonable" for the above-mentioned companies, Bloomberg reported.
As the largest holder of patents, Song Liuping, the Chief Legal Officer of Huawei is expecting that from 2019 to 2021, the consumer electronics firm will have a total collection that falls between $1.2 billion and $1.3 billion revenue for the patent licensing.
However, Huawei has not yet clearly stated the partition that only comes from the 5G patents and the possible amount that would come from the forthcoming negotiations.
Meanwhile, the Chinese company said that their charge will be much lower compared to Qualcomm, Ericsson AB, and Nokia Oyj, which also charged royalty fees to several companies for their services. For Huawei, there will be a charge of $2.50 per phone if a company wants to add 5G to its products.
Previously, Qualcomm has imposed a price range between $13 and $20 for its service. Now, the semi-conductor company is providing 5G modems mainly for Apple's iPhone even though some said that Apple could be possibly working on an exclusive chip for its soon-to-release smart products like the iPad Pro.
In line with this, Huawei did not reveal if Apple will also buy its technology even though the Cupertino giant is currently working on its own 5G system.
Since the 5G network invaded the market, several patent disputes have already happened involving it.
It is expected that the ownership of the said patent will continue to accelerate, but Huawei could be discussing the enforcement of its right for it now.
Comments of Some Users About Huawei's Imposed 5G Patent Royalty Fee
In the comment section of an article reported by Apple Insider, many users have different opinions about Huawei's action to license 5G patents for the tech giant's smartphones. One user said that what Huawei did was the correct spelling of '"rony."
"This is hilarious! The company that built its business on technology stolen from Cisco is now trying to enforce its own 'patents'. I bet most of Huawei's so-called Standard Essential Patents are bogus and not actually 'essential' to 5G. Huawei is the Chinese Qualcomm," another user wrote.
"Qualcomm used to contend that it had SEPs on 5G/LTE, but when these patents were challenged in court, Qualcomm chose to settle rather than have their patent evaluated for 'essential' status," the user added.
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This article is owned by Tech Times.
Written by Joen Coronel
