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Huawei to demand 5G royalties from Apple and Samsung

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Huawei Technologies Co. is apparently thinking about charging Apple for granting the company access to Huawei’s own wireless 5G patents. The Chinese tech-giant, by successfully doing so, will be able to create a great revenue source. However, if Apple will choose to accept or contest it in court, is yet unknown.

Huawei will negotiate its rates and cross-licensing terms with both Apple and Samsung Electronics. Reportedly, the Chinese company will charge lower rates than Qualcomm Inc., Ericsson AB, and Nokia Oyj. Despite the US government’s ban on the company, Huawei is looking to rope in about $1.2 billion to $1.3 billion in patent and licensing fees between 2019 and 2021. As per official reports, Huawei will be flexible while negotiating the rates for different 5G products. Jason Ding commented, “One thing for certain is that the $2.50 cap is set on smartphones.”

There is a little doubt that battles over profiting from 5G are slowly unfolding among the tech companies. The latest one Huawei to engage on plays out on smartphones. However, the company is also grappling with the US government that has managed to cripple its smartphone business by banning its products on US soil.

Other companies such as Qualcomm are also charging royalties on the technology they supply to clients like Apple. As per various media outlets, the two mobile giants have quarreled over what Apple had called an unfair $7.50 royalty from every iPhone.

To bypass the ban imposed on the company, Huawei executives have made it clear that the American sanctions should not affect its ability to cross-license with U.S. companies as those patents are publicly available. Huawei is looking to employ the payment fees into the research domain for its wireless networking. Actions to be taken on part of Apple are still to be announced to the public.

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