Huawei Announces Royalty Rates for Its Patent License Programs

Huawei Announces Royalty Rates for Its Patent Licenses

Huawei, one of the world’s largest patent holders, unveiled the royalty rates for its handsets, Wi-Fi, and IoT patent license programs last Thursday. The company’s Chief Legal Officer, Song Liuping, emphasized Huawei’s willingness to share cutting-edge innovations through patents, promoting the global sustainable development of industries.

The announcement took place at Huawei’s annual flagship event in Shenzhen, titled “Bridging Horizons of Innovations: Sharing IP, Driving Innovation.” This event showcased expert-led sessions covering various technologies applicable in home, on-the-go, and work settings.

Topics ranged from 5.5G research and audio/video technologies to mobile phone features like ten-size adjustable aperture. Additionally, advancements such as a general obstacle detection network for cars and intelligent production scheduling algorithms were discussed.

Huawei is committed to licensing its standard essential patents (SEPs) based on fair, reasonable, and non-discriminatory (FRAND) principles. During the event, Huawei also revealed the royalty rates for 4G and 5G handsets, Wi-Fi 6 devices, and Internet of Things (IoT) products, where the company holds significant SEPs.

The royalty rate caps for 4G and 5G handsets are set at US$1.5 and US$2.5 per unit, respectively. Wi-Fi 6 consumer devices carry a royalty rate of US$0.5 per unit. For IoT devices, IoT-Centric products are charged one percent of the net selling price, capped at US$0.75, while IoT-Enhanced devices fall within a range of US$0.3 to US$1 per unit.

Alan Fan, Vice President and Head of Huawei’s Intellectual Property Rights Department, emphasized the importance of a positive cycle that protects, rewards, and encourages innovators for sustainable innovation. He stated that reasonable royalty rates would incentivize both innovation creation and adoption.

According to Fan, Huawei has already entered into nearly 200 bilateral patent licenses, with over 350 companies obtaining licenses through patent pools. Huawei’s cumulative royalty payment is approximately three times its total royalty collection, and its 2022 licensing revenue reached US$560 million.

Tomas Lamanauskas, Deputy Secretary-General of the International Telecommunication Union, acknowledged Huawei’s significant role in supporting cost-effective and inclusive innovation at scale during the event. Lamanauskas highlighted the necessity of conducive policies and frameworks to foster flourishing innovation ecosystems while addressing global challenges and striving to achieve the Sustainable Development Goals (SDGs).

Over the past ten years, Huawei’s cumulative research and development (R&D) investment amounted to CNY977.3 billion. In 2022 alone, the company allocated CNY161.5 billion, equivalent to 25.1% of its revenue, to R&D. The 2022 EU Industrial R&D Investment Scoreboard ranked Huawei fourth worldwide.

Huawei has established patent licenses with prominent tech industry players like Samsung and Oppo, as well as leading automakers including Mercedes-Benz, Audi, BMW, Porsche, Subaru, Renault, Lamborghini, and Bentley. Fan also highlighted Huawei’s active advocacy and support for major global open-source industry organizations.

During the event, Huawei launched its official licensing website, providing comprehensive information on bilateral licensing programs encompassing mobile handsets, Wi-Fi, and cellular IoT.

Randall R. Rader, former Chief Judge of the United States Court of Appeals for the Federal Circuit, emphasized the significance of intellectual property as a driving force for technological cooperation that benefits everyone.

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Huawei Announces Royalty Rates for Its Patent Licenses
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