Huawei asks Verizon to pay over US$1 bln for patents: report

June 13, 2019 09:48
US carrier Verizon is said to be facing a huge patent licensing fee demand from China's Huawei. Photo: Bloomberg

Huawei Technologies has told Verizon Communications that the US carrier should pay licensing fees for more than 230 of the Chinese telecoms equipment maker’s patents, seeking more than US$1 billion in aggregate, Reuters reports, citing a source familiar with the matter.

Huawei and Verizon representatives met in New York last week to discuss some of the patents at issue and whether Verizon is using equipment from other companies that could infringe on Huawei patents, the report said.

Verizon should pay to “solve the patent licensing issue,” a Huawei intellectual property licensing executive wrote in February, the Wall Street Journal reported earlier. 

The patents in question are said to range from core network equipment and wireline infrastructure to internet-of-things technology.

The dispute comes amid a growing trade and tech feud between China and the US, with the licensing fee demand seen as being more about the geopolitical battle between the two nations.

“These issues are larger than just Verizon. Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and international concerns,” Reuters quoted a Verizon spokesman as saying. 

The US last month put Huawei on a blacklist that barred it from doing business with American companies on security grounds without government approval, prompting some global tech firms to cut ties with the Chinese firm.

Washington is also seeking the extradition of Huawei CFO Meng Wanzhou from Canada after her arrest in Vancouver last December on a US warrant.

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