Huawei demands billion-dollar patent fees from Verizon

Huawei, the Chinese telecoms mogul and the primary target of the Trump administration amid the fierce disputes between Washington and Beijing, is demanding billion-dollar patent fees from Verizon, launching its “prepared counterattack” in earnest.

Reuters News and the Wall Street Journal (WSJ) cited their source on Wednesday, reporting that a Huawei intellectual property licensing executive wrote to Verizon to pay to solve the patent licensing issue. It is reported that the representatives of Huawei and Verizon met last week in New York to discuss some of the patents at issue.

According to the WSJ, the Chinese telecoms company demanded licensing fees for more than 230 of its patents including some essential network devices, wired infrastructure, Internet of Things (IoT) technologies, with the total fees amounting to more than a billion dollars. While Verizon is not Huawei’s client, the demand from the Chinese company could affect some partners of Verizon’s. “We have no comment regarding this specific issue because it’s a potential legal matter,” a Verizon spokesman said.

It is estimated that Huawei sent the letter at issue after the U.S. government prosecuting Huawei Chief Financial Officer Meng Wanzhou on charges of sanctions fraud on Iran in late January. “Huawei’s letter came amid extensive efforts by American policymakers and the Trump administration to limit Huawei’s global reach,” the newspaper reported. “It is further escalating tensions between the Chinese company and the U.S.”

Separately, CNBC reported that the Chines telecoms giant filed an ex parte memo with the Federal Communications Commission (FCC) that it “does not agree with the view that the Chinese companies pose a threat simply because they are Chinese.” The FCC is implementing a policy to ban federal subsidies for carriers for the purchase of products of foreign companies deemed capable of posing a threat to America’s national security.


Yong Park parky@donga.com