Huawei shrugs off Verizon patent talks as ‘common’ business

HONG KONG (Reuters) – Huawei pegged its patent talks with U.S. service Verizon (VZ.N) as “common” business exercise and stated such negotiations shouldn’t be politicized, days after a senator filed laws to forestall the Chinese agency from in search of damages in U.S. courts.

FILE PHOTO: A Huawei firm emblem is seen at CES (Consumer Electronics Show) Asia 2019 in Shanghai, China June 11, 2019. REUTERS/Aly Song/File Photo

The firm has demanded that Verizon pay licensing charges for greater than 230 of the telecoms tools maker’s patents and is in search of over $1 billion, an individual has advised Reuters, in opposition to a background of mounting U.S.-China commerce tensions.

Republican Senator Marco Rubio has described Huawei’s demand as “baseless” and filed the laws as an modification to the National Defense Authorization Act, or NDAA, which locations a broad ban on using U.S. federal cash to purchase Huawei merchandise citing nationwide safety issues.

“We simply don’t believe Marco Rubio’s amendment could be passed as law,” Huawei’s chief authorized officer, Song Liuping, stated on the firm’s Shenzhen headquarters on Thursday.

Intellectual property (IP) rights “should not be politicized”, Song stated. “IP is a private property issue and should be free from the competition, trade talks and any other allegations that countries have between them.”

Song added that Huawei has been discussing patent licensing with corporations within the United States, Europe and different components of the world frequently.

While the measure proposed by Rubio is a number of steps from changing into legislation, lawmakers have efficiently used the NDAA up to now to crack down on the Chinese agency.

Huawei, the world’s greatest telecommunications tools maker and No.2 smartphone maker, denies its merchandise pose a safety risk and has sought to battle again in U.S. courts since Washington put it on an export blacklist final month.


It lately sued the U.S. authorities over the NDAA.

The Chinese agency additionally sued CNEX Labs Inc, alleging misappropriation of commerce secrets and techniques involving a reminiscence management know-how by the California semiconductor designer and poaching of staff.

A U.S. jury on Wednesday cleared CNEX, whereas awarding the U.S. agency no damages by itself commerce theft claims.

Analysts have stated Huawei could also be extra inclined to monetize its U.S. patents now that the market ban and provider ban imposed by Washington is anticipated to price the agency $30 billion in income.

However, Song stated Huawei has no intention of weaponizing the corporate’s IP rights, echoing founder and CEO Ren Zhengfei from earlier this month.

Huawei, which has acquired over $1.four billion in licensing income since 2015, is in opposition to charging exorbitant royalties, Song stated, including the agency had by no means been requested by a court docket to pay damages for malicious IP theft.

In 2017, a jury discovered Huawei misappropriated commerce secrets and techniques from T-Mobile (TMUS.O) and ordered it to pay $four.eight million to the U.S. telco for breaching a handset provide contract between the 2 corporations. The jury, nevertheless, didn’t discover Huawei’s misappropriation “wilful and malicious”.

“We are not going to be a company with a major source of revenue from royalties,” Song stated, including that Huawei will stay centered on its core business for its high line.

Huawei paid greater than $6 billion in royalties to legally implement IP of different corporations and has been granted 87,805 patents, of which 11,152 are U.S. patents, Song stated.

Huawei has probably the most 5G customary important patents on this planet, in accordance with consultancy IPlytics.

Reporting by Sijia Jiang in Hong Kong; Writing by Sayantani Ghosh, Editing by Himani Sarkar

Our Standards:The Thomson Reuters Trust Principles.

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