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Huawei is not charging 5G phones royalties higher than Qualcomm: Founder

On March 16, Huawei published a new whitepaper on Innovation and Intellectual Property 2020, the whitepaper explains Huawei’s business strategy for patent security and sharing to the global industry.

Following this announcement, Huawei also confirmed that it’ll start charging big companies with patent royalties and earn from the technology that is made based on the patented designs. According to the information, Huawei will charge 2.5 US dollars per device unit, which can even be negotiated with companies including Apple and Samsung.

Related to this, Ren Zhengfei, founder and CEO of Huawei, recently gave a statement on this matter and said Huawei has developed very fast in the past years, and every employee of the company has no time to spare and won’t charge for their work. However, when they’re free, they will charge for their work but the fees will not be as higher as Qualcomm.

This is surely a great statement from the Huawei founder and outlines Huawei’s commitment to its customers.

Ren Zhengfei revealed that many large companies in the world are paying Huawei patent fees, but he has not announced the specific list. The materials provided by Huawei show that since 2015, Huawei’s intellectual property revenue has exceeded US$1.4 billion.

A previous report reveals that Huawei expected to get around 1.2 to 1.3 billion US dollars in revenue from patent licensing between 2019 and 2021.

Huawei’s Chief Legal Officer Song Liuping said that Huawei is a company that mainly produces products and its main source of income is still to provide customers with the best products and services, not to achieve patent licensing revenue.

As of 2020, Huawei has more than 100,000 patents, of which 5G-related patents account for more than 6%. According to a report released by the German patent information analysis organization IPlytics, as of October last year, Huawei’s 5G patent applications ranked first in the world with 6,372, and Qualcomm and Samsung were ranked second and third, with 4590 and 4052 respectively.

The company recently launched a dedicated website that allows customers to view over 700 key patents in different categories. These are just chunks of 100,000 patent collections that Huawei owns and developed through its Research and development capabilities.

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