China’s Huawei and Nokia recently reached an agreement to continue licensing smartphone and networking technology to each other, reflecting efforts to strip the Chinese company of its technological leadership in global networks despite years of U.S. sanctions against Huawei still face great challenges.
The Wall Street Journal pointed out that Huawei and Nokia announced a patent licensing agreement, extending a five-year-old technology sharing agreement, showing that Huawei’s intellectual property remains deeply entrenched in global networks, despite the U.S. sanctions have effectively shut them out of many Western markets.
Interest in acquiring Huawei’s next-generation telecommunications patents remains strong despite U.S. accusations that the company poses a threat to its national security, the company said. Neither Huawei nor Nokia disclosed technical details of the deal, which covers technology needed to build or connect wireless networks.
FX168 Finance pointed out that US technology export restrictions have destroyed Huawei’s smartphone business and restricted the sales of its advanced communication equipment in developed markets. Huawei has developed new markets and businesses for this purpose. It began collecting royalties from the world’s biggest smartphone brands, including Apple Inc and Samsung Electronics Co, after first announcing plans to expand its licensing business from 2021.
Fan Zhiyong, head of Huawei’s global intellectual property rights, said in a statement that Huawei has signed more than 20 patent licensing agreements this year, covering smartphones, connected cars, the Internet and the Internet of Things. The automotive industry alone has reached agreements with about 15 automakers. Huawei’s wireless technology, which includes well-known brands such as Audi, Mercedes-Benz, BMW, Porsche, Renault, Suzuki, Lamborghini, Subaru and Bentley.
Intellectual property cooperation is one of the few areas where Huawei can still make significant progress in developed markets such as Europe, the report said.
Britain has decided to remove the Chinese company from its 5G network by 2027, and a senior EU official last month urged countries such as Germany to stop using high-risk 5G suppliers without naming Huawei.
Huawei’s net revenue fell 40% in the first three quarters of 2022, even as it invested heavily in research to maintain its lead in 5G networks, the report said. Huawei remains the largest holder of patents for ultra-high-speed broadband technology that is fast becoming mainstream for mobile users around the world, and it also sells artificial intelligence and wireless communications equipment to non-traditional customers such as automakers, coal mines and industrial complexes to seek other sources of income.
According to Steven Geiszler, Huawei’s chief intellectual property counsel in the United States, as publicly disclosed technologies, Huawei’s patents are not subject to U.S. restrictions.