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Huawei asks Verizon for more than $ 1 billion in patent licensing fees



( Reuters ) – Huawei has notified Verizon that the US airline is to pay royalties for more than 230 patents of the Chinese manufacturer of telecommunications equipment, and claimed more than $ 1 billion in total. The matter became announced on Wednesday.

Verizon should pay to "solve the patent licensing problem," a senior Huawei intellectual property official wrote in February, the Wall Street Journal previously reported. The patents cover the networking equipment of more than 20 vendors, including major US technology companies. However, these providers would compensate Verizon, according to the person. Some of these companies were contacted directly by Huawei, the person said.

The patents in question range from core power supplies, wired infrastructure, to Internet of Things technology, the Journal reported. The license fees for the more than 230 registered patents amount to more than 1

billion US dollars.

Huawei has been fighting the US government for more than a year. National security experts fear that "backdoors" in routers, switches, and other Huawei devices could allow China to spy on US communications. Huawei has denied that this would help China's espionage.

The companies involved, including Verizon, have informed the US government, and the dispute is taking place in the midst of a growing feud between China and the US. The demand for royalties may be more due to the geopolitical dispute between China and the United States than to the demand for patent fees.

Huawei and Verizon representatives met last week in New York to discuss some of the patents in question and discuss whether Verizon is using devices from other companies that might violate Huawei's patents.

Verizon spokesman Rich Young declined to comment on "this particular issue because it is a potential legal matter."

However, Young said, "These issues are bigger than Verizon's. Given the broader geopolitical context, any issue with Huawei has an impact on our entire industry and raises national and international concerns. "

T-Mobile US and AT & T carriers Huawei and the US did not respond to Reuters' requests for comments. Sprint declined to comment.

The United States blacklisted Huawei last month, which for security reasons prohibited it from doing business with US companies without government approval. This prompted some global technology companies to cut ties with the world's largest telecommunications equipment supplier.

Washington is also seeking the extradition of Huawei's chief financial officer, Meng Wanzhou, from Canada after she was arrested last December in Vancouver for a US arrest warrant.

Since then, China has increased pressure on Canada, stopped the Canadian rapeseed imports and in May suspended the permits of two major pork producers.

( Arjun Panchadar reports in Bengaluru and David Shepardson in Washington, editors of Anil D & # 39; Silva, Sriraj Kalluvila, and Sandra Maler )


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