Huawei Attempting On Licensing 5G Platform With US Firms

Huawei Licencing 5G Revenues From US Firms

Sunday, October 20, 2019

/ by Theo Mason

  • Huawei Working On Licensing 5G Revenues With US Firms
  • Huawei Licensing 5G Platform With US Firms

According to the latest update from Reuters, which show that Huawei is attempting other methods of extracting value from its extensive 5G Standards Essential Patent (SEP) Declaration portfolio of technologies and that it is in talks with several US telecoms companies about licensing 5G technology to them. 
Huawei executive Vincent Pang  said that there are several US firms interested in the Chinese firm’s 5G tech with possibilities ranging from long term licensing deals to one off technology transfers. This is a smart move from Huawei. As a target in the ongoing trade war, it has been kicked back and forth through multiple rounds, being put on the US Entity List effectively barring American companies from working with it, but then gaining reprieves and exemptions. One thing is clear however, Huawei has not taken things lying down and is a different beast to ZTE (HKG:0763) which effectively saw its business implode after being placed on the US entity list previously.
Huawei has been pursuing making its own technology, attempting to reduce its reliance on Google (NASDAQ:GOOGL 1244.41 -0.67%) for Android software on its handsets as well as Qualcomm (NASDAQ:QCOM 77.68 -1.63%) chips for its handsets as it forges ahead with its own Kirin chips. Huawei is at the convergence of numerous themes in the trade war between the US and China. Part security concern, part intellectual property theft concern, part trade imbalance concern, the high level rhetoric about the trade war has been about the trade imbalance between the US and China, but in reality the real problem is more the security and IP issues.
More at stake is the technological cold war currently being waged between the US/West and China and the concerns the West has over Chinese governmental access to critical Western communications infrastructure, for Huawei, licencing may be critical to being able to gain some of the revenue it was hoping for when it invested billions into trying to build up the largest 5G SEP declaration patent portfolio. If it can’t sell hardware and software directly to US companies (other Western countries have been a bit more relaxed around banning Huawei from their 5G infrastructure) due to security concerns, it may as well try to license some of the underlying technology to these firms so that it can still get some money.
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