How Huawei Might Retaliate Against The US Ban With Patent Portfolio

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Huawei seems to be the major target in the trade war between the U.S. and China. The company was recently banned by the Trump lead government from doing business with companies in the US. Despite keeping its head afloat, the ban has resulted in the lost of millions in the part of the Chinese tech giant. From the look of things, the situation isn’t showing any sign of improvements. Even with the launch of its 5G network, the US is pressuring its European allies to not use Huawei’s 5G equipment.

If the situation continues, there is a possibility that Huawei could retaliate, with some deadly weapons in its arsenal. If you are wondering how this will be possible, then read on. What most people don’t know, is that Huawei owns a vast portfolio of patents on essential technology. According to reports from Anaqua’s AcclaimIP, Huawei owns 56,492 active patents on telecommunications, networking, and other inventions. In the year 2018, the company apparently received 1,680 US patents and its total collection of active patents and published applications stand at 102,911.

With the huge number of patents at its disposal, the company might decide to retaliate by putting its patents to good use. Whether or not the US or any country decides to use Huawei’s infrastructure, there are pretty high chances that they will still be using one of the technologies that Huawei has a patent on.

Huawei is currently in protracted licensing talks with phone-services provider Verizon Communications and is in a dispute with chip maker Qualcomm over the value of patents. The company has also lodged claims against Harris Corp. After the defense contractor sued it last year alleging infringement of patents for networking and cloud security.

Huawei is reportedly asking for over $1 billion in patent licensing fees for using around 320 of its networking equipment patents, even though Verizon isn’t directly using Huawei’s equipment. Verizon is the biggest smartphone carrier in the U.S. and the first telecom company in the country to roll out 5G networks. According to McGregor, “Huawei can say ‘whether you’re using our equipment or Ericsson’s equipment, you’re using our inventions and for that, you still have to take a license.’’ Huawei could dash the US a big blow by deciding to charge US companies more money for the right to use its inventions.

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