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Huawei will start charging royalties to brands using its 5G patents

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After being drastically hit with the US ban, Huawei is now looking for new ways to make money. Apparently, the Chinese tech company found a new one by charging brands that use its 5G patents royalties.

Unlike Nokia and Qualcomm, Huawei said that its royalty rates would be reasonable with a USD2.50 cap per smartphone with 5G and an older generation of mobile network technology.

Huawei has filed 3,007 5G patent families — the most a company has ever filed in the world — as per GreyB, an intellectual property research organization. Patent families are a group of similar or same patents that’s been filed in different countries.

As per GreyB, Huawei has an estimate of 18.3% of 5G patent families that are SEPs and are in use. Again, the most of any other company. Besides Huawei, other top patent holders are Samsung, LG, Qualcomm, Ericsson, and Nokia.

Huawei’s USD2.50 per cap royalty rate is noticeably lower than the competition. In comparison, Nokia increased its price back in 2018 to EUR3.00 (around USD3.58). Ericsson also said that its usual USD2.50 would double to USD5.00.

Other than 5G, Huawei has also charged brands with royalties for its 4G patents. They weren’t that aggressive in collecting royalties before, but that’s about to change.

As per Huawei, they estimate to get USD1.2 to 1.3 billion from patent licensing revenues between 2019 and 2021.

Via: CNBC

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