Huawei Announces Royalty Rates For Its Patent Licence Programmes

Huawei Announces Royalty Rates For Its Patent Licence Programmes

Huawei has announced royalty rates for handset, Wi-Fi and IoT patent licensing programs.

"Huawei is ready to share the latest innovations with the world in the form of patents," said Sun Luping, the company's legal director, adding: "It will contribute to the general and sustainable development of the industry on a global scale. ".

He spoke at Huawei's annual innovation and intellectual property protection event in Shenzhen, which this year was titled "Bridging the Horizons of Innovation. Over the past 20 years, Huawei has made significant contributions to the development of consumer ICT standards such as cellular, Wi-Fi and multimedia codecs.

The event included an exchange of opinions of experts from various fields on technologies used at home, on the road and at work. This latest research includes 5.5G. Audio and video equipment. Ten adjustable cell phone slot sizes; a public obstacle detection network that helps machines detect anomalies outside of the public obstacle whitelist; and algorithms that can provide intelligent planning and production optimization.

Huawei is committed to licensing Standard Basic Licenses (SEPs) in accordance with the principles of Fairness, Reasonableness and Non-Discrimination (FRAND). At the event, Huawei also announced royalty prices for 4G and 5G phones, Wi-Fi 6 devices, and Internet of Things (IoT) products, all areas where Huawei is a major SEP holder. The maximum price for 4G and 5G phones is $1.5 per unit and $2.5 per unit, respectively. Meanwhile, Huawei's royalty for consumer Wi-Fi 6 devices is $0.50 per unit. For IoT, IoT-focused devices are priced at 1% of the net selling price, up to a maximum of $0.75, while IoT-optimized devices cost $0.3 to $1 per unit.

Alan Fan, vice president and director of intellectual property rights at Huawei, emphasized that a positive cycle where innovators are protected, encouraged and rewarded is the key to sustainable innovation.

"Huawei takes a balanced approach to patent licensing. We believe that reasonable royalty rates will encourage both creativity and innovation,” he said.

Feng said that Huawei has received about 200 bilateral patents so far. In addition, more than 350 companies have licensed Huawei's patents through patent pools. Under these licenses, Huawei's previous total royalties are about three times the total amount, and the licensing revenue in 2022 was $560 million.

Speaking remotely at the event, ITU Deputy Secretary-General Tomas Lamanauskas said Huawei plays a key role in the collaborative process to support cost-effective and inclusive innovation.

"As we continue to address global challenges and work to deliver on the Sustainable Development Goals (SDGs), enabling policies and frameworks are critical to the development of innovation ecosystems," Lamanauskas added.

The company's total investment in research and development has reached 977.3 billion yuan over the past 10 years. In 2022, its R&D spending will reach 161.5 billion yuan, or 25.1 percent of revenue. In the European Union's 2022 Industrial R&D investment ranking, Huawei is the fourth in the world.

Huawei has patents with major technology companies such as Samsung and Oppo, as well as major car manufacturers such as Mercedes-Benz, Audi, BMW, Porsche, Subaru, Renault , Lamborghini and Bentley. Feng says he is also an advocate and active supporter of the world's top organizations in the open source industry.

Huawei's official licensing website was also launched at the event. This site details the company's two-factor licensing programs, ranging from mobile phones to Wi-Fi and mobile IoT. “Intellectual property is a powerful driver of technology collaboration. It improves technology to everyone's satisfaction," says Randall R. Rader, former Chief Justice of the United States Court of Appeals for the Federal Circuit.

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