wu
Wu05c837@80500·Jul 19

Huawei's actions on patent fees are becoming intensive. On July 13, Huawei announced that it will charge patent licensing rates for Wi-Fi 6 devices and IoT products. On the same day, Huawei announced its licensing revenue in 2022, which is about US$560 million in total, mainly from standard essential patents. This is the first time that Huawei has announced its patent licensing revenue in a single year. In 2021 and 2019, Huawei has announced its revenue for the past three and five years, respectively. The average annual revenue has risen from US$280 million to US$400 million.

Huawei has a deep technical accumulation. From the perspective of the number of patents, Huawei owns 20% of 5G and WIFI6 patents, 10% of 4G patents, and 15% of NB-IoT and LTE-M patents in the world.

Post by @80500.lens
  • wu
    Wu05c837@80500·Jul 19

    Expansion of the range of paid technical categories

    For Wi-Fi6 consumer-grade products (terminal products containing Wi-Fi6 modules, such as routers), Huawei's quotation is US$0.6 per unit. Huawei said it will also provide "one-stop" Wi-Fi licensing through organizations such as patent pool operating companies.

    For IoT devices, Huawei distinguishes between two device types. For devices centered around Internet of Things technology, such as asset trackers and smart censors, Huawei uses a percentage rate of 1% of the product’s selling price, with a cap of $0.75 per unit. "This arrangement is to allow even the cheapest IoT products to be licensed," said Shen Hongfei, vice president of Huawei's legal department and head of the major project department.

    The other is a device that helps basic products connect to the network, such as smart meters, shared bicycles, etc. The rate ranges from 0.3 to 1 US dollars, mainly reflecting the value of wireless connections, rather than the value of basic products.

    The scope of Huawei's early patent fees was mainly in the field of telecommunications equipment. Starting from 2021, Huawei began to charge patent fees for 4G and 5G mobile phones. In terms of mobile phones, Huawei is a major contributor to many key technologies of 4G/5G standards such as carrier aggregation, modulation, and polar codes.

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