Huawei To Start Demanding 5G Royalties From Apple, Samsung

Huawei will begin charging mobile giants like Apple a "reasonable" fee for access to its trove of wireless 5G patents, potentially creating a lucrative revenue source by showcasing its global lead in next-generation networking. From a report: The owner of the world's largest portfolio of 5G patents will negotiate rates and potential cross-licensing with the iPhone maker and Samsung Electronics, Chief Legal Officer Song Liuping said. It aims to get paid despite U.S. efforts to block its network gear and shut it out of the supply chain, but promised to charge lower rates than rivals like Qualcomm, Ericsson AB and Nokia Oyj. Huawei should rake in about $1.2 billion to $1.3 billion in patent and licensing fees between 2019 and 2021, executives said without specifying which of those stemmed from 5G. It's capping per-phone royalties at $2.50, according to Jason Ding, head of Huawei's intellectual property department. China's largest technology company by revenue wants a seat at the table with tech giants vying to define the rapidly evolving field of connected cars, smart homes and robotic surgery. Battles are unfolding over who profits from 5G that may dwarf the size and scope of the tech industry's first worldwide patent war -- the one over smartphones. But having only just become a major player in 5G standards boards, Huawei is now grappling with U.S. sanctions that have all but crippled its smartphone business and threaten to hamstring its networking division abroad.

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