Huawei licenses 5G patents rivalling as U.S. sanctions force the Chinese firm to pursue new payment

December 13, 2022: -On Friday, Chinese technology giant Huawei said it would license its 5G technology rival handset maker Oppo as it is looking to unlock a new revenue stream after U.S. sanctions crushed its smartphone business.

Huawei and Oppo, the fourth biggest smartphone maker in the world, signed a “the patent cross-licensing agreement, covering cellular standard essential patents, including 5G.”

Next-generation ultra-fast mobile internet is key to underpinning future industries like artificial intelligence and autonomous cars. Huawei has a massive portfolio of more than 100,000 patents globally. It is the top patent holder in 5G technology.

When a recent generation of cellular technology is developed, global standards must be created. These protocols, technical specifications and designs allow wireless interoperability between 5G networks and enable smartphones to communicate with these networks.

The patents, which are serious to the standards of 4G or 5G, will be deemed a “standard essential patent” or SEP. Industry bodies are tasked with making these, and companies like Huawei will contribute. These companies devise systems which they then patent.

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

However, in 2019, the U.S. used several measures, including an export blocklist, to cut Huawei from the critical semiconductors it needs for its smartphones and other products. This crushed the firm’s smartphone business which was once number one worldwide.

The previous year, the Chinese tech firm indicated that it would begin selling its technology to different companies via patents.

The group expected to earn $1.2 billion to $1.3 billion from licensing its intellectual property in 2019 and 2021. Huawei said it met its intellectual property revenue anticipations for 2021 but did not provide a figure.

5G is becoming a contentious part of the broader technology fight between the U.S. and China. Both nations notice that it is a critical technology. But the U.S. has shown concerns that Huawei is showing a national security threat and has pressured other countries to ban the Chinese organizations from their 5G infrastructure. Huawei has repeatedly denied that it is a national security threat.