Huawei to Negotiate Royalties From Apple and Samsung for 5G Technology

[MacRumors]

Huawei will begin negotiating for royalties from Apple and Samsung for access to its portfolio of patents on 5G technology (via Bloomberg).

Huawei is the owner of the world's largest collection of 5G patents and is seeking to charge other large tech companies a "reasonable" fee for access to them, creating a substantial new source of revenue.

Huawei's Chief Legal Officer, Song Liuping, explained earlier today that the company will negotiate rates and comprehensive cross-licensing agreements with Apple and Samsung, promising to charge lower rates than competitors such as Qualcomm, Ericsson, and Nokia. "It's natural" for Huawei to capitalize on its patents, Song said.

Per-phone royalties will be capped at $2.50, which is markedly less than Qualcomm's $7.50 rate that led to a legal battle with Apple over supposedly unfair pricing.

While Apple is currently reliant on Qualcomm and expected to stick with external suppliers for its 5G technology until 2022, the company is rumored to be developing its own 5G modem for introduction on the 2023 iPhone models. Apple is also believed to have begun work on next-generation 6G wireless technologies.

With Apple seeking to move away from reliance on other companies for wireless technologies, it is unclear how a deal with Huawei may pan out. Though Apple could take advantage of Huawei's expansive portfolio of 5G patents to develop its own wireless technologies, the company's apparent desire for independence in this area may mire the chances of a sustainable long-term agreement.

Article Link: Huawei to Negotiate Royalties From Apple and Samsung for 5G Technology

 

[GuruZac]

The problem is, it's likely Huawei stole the tech in the first place. 🙄

 

[Quackington]

Maybe Apple could avoid working with ****** companies like this that contribute to genocide against the Uighur people:

Huawei patent mentions use of Uighur-spotting tech - BBC News

The company denies selling technology that can identify the ethnic group and plans to reword the patent.

www.google.co.uk

 

[msp3]

Are firms allowed to enter into negotiations to do business with firms on the entity list? Or is this OK because dementia Joe's son is getting a payoff from The Party so the feds will give them an exemption?

 

[IIGS User]

This thread will most likely devolve away from any talk of technology and patents, but I supposed that is to be expected.

While the article calls what Huawei is doing "negotiation" many other news outlets have described Huawei's stance as "demands". So I suppose the perception is important.

I don't really think Huawei is in a position to "demand" anything from Apple or Samsung. I mean, I can demand my employer double my salary this instant, but I suppose I will be sitting at my desk, getting paid the same amount while my boss laughs down the hall. That's if I still have a job. Huawei really has no legal standing to demand anything. So they can negotiate all they want, and Apple and Samsung can tell them to stick it.

Huawei is better off diversifying into the fish farming and mining businesses where being controlled by the PLA is a positive for business.

 

[femike]

Good news. A non-US company getting royalties for patents. US corporations make billions from patents and China and other countries should return the favour.

 

[LeadingHeat]

This company is worse than Samsung at copying tech, with straight up copyright infringement. I hope it’s not a necessary evil to partner with them in order to get 5G into the other markets, but if they truly do have a multitude of patents there may not be a way around it. I just hate to see that company’s R&D fund fueled by any more money.

 

[Bearxor]

Good news. A non-US company getting royalties for patents. US corporations make billions from patents and China and other countries should return the favour.

You’re kidding right? The Chinese government steals IP from everywhere, then gives that information to universities in China who patent it, and then the government assigns those patents to companies.

 

[69Mustang]

While Apple is currently reliant on Qualcomm and expected to stick with external suppliers for its 5G technology until 2022, the company is rumored to be developing its own 5G modem for introduction on the 2023 iPhone models. Apple is also believed to have begun work on next-generation 6G wireless technologies.

With Apple seeking to move away from reliance on other companies for wireless technologies, it is unclear how a deal with Huawei may pan out. Though Apple could take advantage of Huawei's expansive portfolio of 5G patents to develop its own wireless technologies, the company's apparent desire for independence in this area may mire the chances of a sustainable long-term agreement.

This article is conflating hardware with patents for some odd reason. Apple developing it's own modem doesn't obviate the need to license patents. That element will always be there. Building their own modem would mean they wouldn't have to use anyone else's hardware. The underlying patents still require licenses.

 

[Reason077]

The problem is, it's likely Huawei stole the tech in the first place. ?

This has clearly been true of many Chinese companies in the past, but not when it comes to Huawei and 5G. They are widely acknowledged to be genuine leaders in 5G technology.

 

[XXPP]

Insolence. Comedy. A country that has stolen millions of patents wants a fee.

 

[macsareveryinteresting]

The problem is, it's likely Huawei stole the tech in the first place. ?

Yeah they kinda did. Just like how Google copies Apple.

 

[nt5672]

This has clearly been true of many Chinese companies in the past, but not when it comes to Huawei and 5G. They are widely acknowledged to be genuine leaders in 5G technology.

That is what happens when American companies decide to pay executives enormous salaries instead of using that money for protecting their IP and keeping it here at home. Works for the executive that will just retire rich, but sucks for America and the company itself.

Selling out America to get rich has a long tradition in both the corporate world and politics.

 

[gnomeisland]

This article is conflating hardware with patents for some odd reason. Apple developing it's own modem doesn't obviate the need to license patents. That element will always be there. Building their own modem would mean they wouldn't have to use anyone else's hardware. The underlying patents still require licenses.

Exactly, without wading into the murky waters of China's IP law history, this seems like a great step towards Apple's wireless chip independence. Apple isn't getting chips or even micro-code from Huawei, so there's nothing suspect, and FRAND patent payments are the norm because they benefit everyone by encouraging both innovation of IP and manufacturing competition. If anything, it makes Qualcomms royalty demands seem even more ridiculous but that ship has sailed (for now).

 

[69Mustang]

Insolence. Comedy. A country that has stolen millions of patents wants a fee.

And they're going to get their fee too. Huawei has the patents and a fair amount of them are considered standards essential. Apple already has license agreements with Huawei for 4G patents so this will be nothing unusual for them.

 

[macdos]

Europe copied (and raped) China, America copied Europe, China copied America. Circle closed.

 

[sw1tcher]

The problem is, it's likely Huawei stole the tech in the first place. 🙄

If Huawei stole the tech, then why have they been leaders in the 5G space for so long? Wouldn't the companies they supposedly stole this tech from have competitive 5G equipment? There's a reason why they're behind Huawei.

 

[macdos]

America can't compete. So America blocks. And America is losing the game.

 

[magicschoolbus]

My future phone will not be an iPhone if more and more Chinese tech starts working its way into it.

 

[macdos]

My future phone will not be an iPhone if more and more Chinese tech starts working its way into it.

Of course not. It will be a Xiaomi, an Oppo, a Huawei or some other brand. As there will be no Iphone in the future, just like there are no Nokias and Ericssons left…

 

[obargy]

(controversial stuff. deleted)

 

[sw1tcher]

Huawei really has no legal standing to demand anything. So they can negotiate all they want, and Apple and Samsung can tell them to stick it.

It's called a patent and not if Apple or Samsung want to legally use Huawei's tech.

Patent - Wikipedia

en.wikipedia.org

"A patent is a title that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of years in exchange for publishing an enabling public disclosure of the invention. In most countries, patent rights fall under private law and the patent holder must sue someone infringing the patent in order to enforce his or her rights."

 

[cardfan]

It’s just so pathetic seeing how many Americans here hate anything Chinese just because their main stream media and their government always say biased ***** towards China.

You will be astonished if you ask how many Canadians are annoyed by their American neighbour now, which is not the case years ago.

You’d be astonished at how many don’t care how Canadians are feeling.

 

[obargy]

(controversial stuff. deleted)

 

[69Mustang]

I don't really think Huawei is in a position to "demand" anything from Apple or Samsung. I mean, I can demand my employer double my salary this instant, but I suppose I will be sitting at my desk, getting paid the same amount while my boss laughs down the hall. That's if I still have a job. Huawei really has no legal standing to demand anything. So they can negotiate all they want, and Apple and Samsung can tell them to stick it.

Not really sure how you've concluded Huawei has no legal standing to negotiate royalties. Regardless, you're advocating for the double-edged sword to cut both ways. If Apple and Samsung ignore Huawei's patents (they won't) then they won't have a leg to stand on when others ignore their patents. A veritable free for all and none of them want that... especially Apple. Since ignoring Apple's patents could hypothetically lead to companies making verbatim copies with no fear of consequences. ←Intentionally hyperbolic to drill home the absurdity of "...Apple and Samsung can tell them to stick it."