Huawei announces royalty rates for 5G phone technology

SHENZHEN, China (Reuters) – Huawei Technologies first announced royalty rates for using its 5G phone technology, in a move its chief legal officer said was an effort to increase transparency in an event on Tuesday.

The company was blacklisted for exports by former US President Donald Trump in 2019 and blocked from access to critical technology of US origin, which affects its ability to design its own source chips and components from external suppliers.

However, Huawei is looking to show its search results, with the company expecting to receive around $ 1.3 billion in revenue from patent licensing between 2019 and 2021, according to its head of intellectual property, Jason Ding.

For every phone that uses Huawei’s 5G technology, which is capable of running, the company will receive up to $ 2.5 in royalties, Ding said.

Along with rivals Samsung Electronics, Nokia, Ericsson and chip maker Qualcomm, Huawei is one of the leaders in 5G patents, although studies on which company leads the race vary.

Huawei achieved positive growth in both 2020 revenue and net profit, company founder and CEO Ren Zhengfei said in February, adding that the company continued to see significant levels of confidence. from its customers.

However, the company’s smartphone business remains under severe pressure due to the US ban. Huawei’s consumer business accounted for 54.4% of the company’s revenue in 2019.

The company is expected to reveal full data for 2020 at the end of the month.

By the end of 2020, Huawei held more than 100,000 active patents in more than 40,000 patent families around the world, the company said. Its R&D investments totaled 131.7 billion yuan ($ 20.27 billion) in 2019.

($ 1 = 6.4960 Chinese yuan)

Reporting by David Kirton; editing by Uttaresh.V