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Huawei licenses 5G patents to rival as U.S. sanctions bite


A picture of a girl holding a cellphone in front of a Huawei logo displayed on a pc screen. Canada on Thursday said it plans to ban using China’s Huawei Technologies and ZTE 5G gearto protect national security, joining the remaining of the so-called Five Eyes intelligence-sharing network.

Artur Widak | Nurphoto | Getty Images

Chinese technology giant Huawei said Friday it is going to license its 5G technology to rival handset maker Oppo because it looks to unlock a recent revenue stream after its smartphone business was crushed by U.S. sanctions.

Huawei and Oppo, the fourth largest smartphone maker on the planet, signed a “global patent cross-licensing agreement, which covers cellular standard essential patents, including 5G.”

Huawei has an enormous portfolio of over 100,000 patents globally. It’s certainly one of the highest patent holders in 5G technology, which is next-generation ultra-fast mobile web seen as key to underpinning future industries corresponding to artificial intelligence and autonomous cars.

When a recent generation of cellular technology is being developed, so-called global standards must be created. These are protocols, technical specifications and design that allow interoperability between 5G networks globally and allows smartphones to speak with these networks.

Industry bodies are tasked with creating these and corporations like Huawei will contribute to their creation. These firms devise technologies which they then patent. The patents, that are critical to the standards of say 4G or 5G, will likely be deemed a “standard essential patent” or SEP.

Huawei has not been aggressive in monetizing these patents historically versus a few of its rivals like Nokia and Ericsson.

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Nevertheless, in 2019, the U.S. used various measures including a export blacklist to chop Huawei off from the critical semiconductors it needed for its smartphones and another products. This crushed the corporate’s smartphone business which was once primary on the planet on the time.

Last yr, the Chinese tech giant indicated that it will begin to begin selling its technology to other firms via patents.

The corporate previously stated that it expected to earn revenue of $1.2 billion to $1.3 billion from licensing its mental property between 2019 to 2021. Huawei said that it met its mental property revenue expectations for 2021, but didn’t provide a figure.

5G has turn out to be a contentious a part of the broader technology battle between the U.S. and China. Each nations view it as a critical technology. However the U.S. has expressed concerns that Huawei represents a national security threat and has pressured other nations to ban the Chinese firm from their 5G infrastructure. Huawei has repeatedly denied that it represents a national security threat.

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