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Huawei to Start Demanding 5G Royalties From Apple, Samsung

  • Executives pledge to charge rates below its competitors
  • Company is keen to expand its clout in global 5G networking
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WATCH: Huawei Technologies Co. is looking to create a lucrative new revenue source by charging mobile giants like Apple Inc. and Samsung Electronics Co. Ltd. a reasonable fee for access to its trove of wireless 5G patents. (Source: Bloomberg)
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Huawei Technologies Co. will begin charging mobile giants like Apple Inc. 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.

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 Co., 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 Inc., 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.