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US’s Verizon Asked To Pay Over $1 Billion For 230 Patents By Huawei: Reports

US’s Verizon Asked To Pay Over $1 Billion For 230 Patents By Huawei: Reports
Chinese tech firm and the largest telecom equipment maker of the world Huawei Technologies Co Ltd has asked a payment of more than $1 billion as licensing fees for using more than 230 of its patents form the United States mobile service provider Verizon Communications Inc according to reports quoting sources with knowledge of the issue.
According to a report published earlier in the Wall Street Journal, a Huawei intellectual property licensing executive had written in February that Verizon should pay to “solve the patent licensing issue.” The patents encompass technologies used in network equipment used by over 20 of the vendors of the company which includes US tech companies, but those vendors would indemnify Verizon, according to the reports. Sources shave also reportedly said that Huawei has been approached directly by some of those firms.
According to the Journal report, a wide range of equipment from core network equipment, wireline infrastructure to internet-of-things technology is included in the patent license fee claim. Reports claimed that the licensing fees that Huawei is seeking to get is more than $1 billion for the more than 230 patents.
It has been more than a year that Huawei has been facing the wrath of the US government. Some experts of the US government have expressed concerns about the possible existence of the so called “back doors” in routers, switches and other Huawei equipment and fear that such gaps could be exploited by Chinese agencies to spy on the US. All such charges have been repeatedly denied by Huawei which has said that it would never allow its equipment to be used for spying.
The US government has been notified of the issue by companies including Verizon and this demand from Huawei comes at a time when the trade relations between the US and China are passing through a phase of heightened tensions. According to experts and analysis, geopolitical issues and tensions between the two countries could be the actual reason for the licensing fee demand by Huawei and is not actually relates to be a demand for patent fees.
Discussions over some of the patents at issue were held in new York between Huawei and Verizon representatives. They also discussed whether Huawei patents could have been infringed because of Verizon using equipment from other companies.
Verizon spokesman Rich Young did not make a comment apart from saying: “regarding this specific issue because it’s a potential legal matter.”
However, “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,” Young said.
No comment was available from Huawei and U.S. wireless carriers T-Mobile US Inc and AT&T Inc.
Last month, Huawie was put on a blacklist by the US Commerce Department which effectively banned all American companies form doing any business with Huawei in terms of products as well as technology without approval from the US government. This had prompted some US based global tech companies to sever business relations with the Chinese firm.

Christopher J. Mitchell

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