Huawei asks Verizon to pay over one billion dollars for over 230 patents
Huawei has told Verizon, a U.S. multinational telecommunications conglomerate, that the U.S. carrier should pay licensing fees for more than 230 of the Chinese telecoms equipment maker's patents and in aggregate is seeking more than one billion dollars, a person briefed on the matter said on Wednesday.
photo via VCG
photo via VCG
Verizon should pay to "solve the patent licensing issue," a Huawei intellectual property licensing executive wrote in February. The patents cover network equipment for more than 20 of the company's vendors including major U.S. tech firms but those vendors would indemnify Verizon, the person said. Some of those firms have been approached directly by Huawei.
The patents in question range from core network equipment, wireline infrastructure to Internet-of-Things technology, the Journal reported. The licensing fees for the more than 230 patents sought is more than one billion dollars, the person said.
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.
Verizon spokesman Rich Young declined to comment "regarding this specific issue because it's a potential legal matter."
However, Young said, "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."
The U.S. last month put Huawei on a blacklist that barred it from doing business with U.S. companies on security grounds without government approval, prompting some global tech firms to cut ties with the world's largest telecoms equipment maker.