Huawei sues Verizon, the largest operator in the United States, for infringing 12 patents-Overseas News-Shenzhen deep trust patent Agency Co., LTD

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Huawei sues Verizon, the largest operator in the United States, for infringing 12 patents

Release Time：

2022-09-24

Huawei issued a document on its official website, announcing that it would file a lawsuit against the US operator Verizon in the Eastern and Western District Courts of Texas, requesting the court to determine that Verizon has infringed on 12 patents authorized by Huawei in the United States, and at the same time requiring Verizon to sue Huawei for its patent infringement. Make compensation. Song Liuping, Huawei's chief legal officer, said: "Verizon's products and services benefit from Huawei's patented technology, which is the result of Huawei's years of R&D investment."

Song Liuping, Huawei's chief legal officer, said: "Verizon's products and services benefit from Huawei's patented technology, which is the result of Huawei's years of R&D investment."

He also said: "Over the years, Huawei has negotiated patent licensing agreements with many industry manufacturers. However, when negotiations cannot solve the problem, it is industry practice to seek a ruling from a third-party judicial authority. As a patent user, Verizon should respect Huawei’s R&D and intellectual property achievements will be paid for use or the infringement will cease.”

It is reported that Huawei and Verizon have been negotiating for a long time and have provided Verizon with a detailed patent list and factual evidence of Verizon's use of Huawei patents. However, the two parties have so far been unable to reach an agreement on licensing terms.

As early as June 2019, media reported that Huawei required Verizon, the largest operator in the United States, to pay licensing fees for more than 230 patents, with a total amount exceeding US$1 billion.

At that time, regarding Verizon's issues, Song Liuping told the 21st Century Business Herald and other media: "In fact, Huawei's intellectual property rights are not a very radical policy, they will not be weaponized, and they will not be high licensing fees, but reasonable licensing fees. .

Second, patent licensing is actually very common for industrial standards in the communications industry. All companies are cross-licensing, including equipment manufacturers, chip manufacturers, and operators. Including Chinese companies, European companies, and American companies, mutual licensing between companies is an ongoing activity and is not just starting now.

Our negotiations with Verizon are specific in normal business, and it does not mean that Huawei will change anything from now on. This is an ongoing process, and we will negotiate with our stakeholders. "

Huawei said that the company has always insisted on high investment in research and development, investing 10% to 15% of its revenue in research and development every year. The cumulative investment in research and development in the past ten years has exceeded US$70 billion. Thanks to this, Huawei has more than 80,000 patents worldwide, including more than 10,000 patents authorized by the United States. These technological achievements are not only the cornerstone of Huawei's own success, but are also widely used by many companies around the world, including American companies, and have brought value to them.

At the same time, Huawei respects and protects its own and third-party intellectual property rights, and advocates the legal sharing and use of patent licenses through cross-licensing or paid licensing. Over the past 20 years, Huawei has conducted extensive cross-licensing negotiations with major patent holders in the telecommunications industry, and has currently signed more than 100 patent licensing agreements with major ICT manufacturers in the United States, Europe, Japan and South Korea.

Since 2015, Huawei has received more than 1.4 billion U.S. dollars in intellectual property revenue, and has paid more than 6 billion U.S. dollars in patent royalties for the legal use of other companies' patents, 80% of which was paid to U.S. companies. In 2018, Huawei's R&D expenses reached US$15 billion, accounting for nearly 15% of annual revenue. It ranked fifth in the world in the "2019 EU Industrial R&D Investment Ranking" subsequently released by the European Union.

Interpretation and Commentary

As the world's leading information and communications technology (ICT) solution provider, Huawei has always believed that protecting intellectual property rights is the only way to innovate. In accordance with universal international principles, Huawei achieves the legal sharing and use of patent licenses through cross-licensing or paid licensing. As it grows, Huawei shares benefits and promotes the prosperity and development of the entire industry and win-win cooperation. And actively promote the continuous improvement of intellectual property laws and industrial policies in various countries around the world through its own practice.

How to use intellectual property as a powerful weapon to escort enterprises to successfully "go global"?

1. Pay attention to independent research and development and continue to invest in research and development funds. Huawei invests 10% to 15% of its revenue in R&D every year. In the past ten years, its cumulative R&D investment has exceeded US$70 billion. High-intensity R&D has brought it more benefits. It is known from public data that China’s R&D investment reached 2.17 trillion yuan in 2019, and China rose from 17th to 14th in the Global Innovation Index. Therefore, it is recommended that enterprises set a proportion of R&D investment, continue to invest in R&D funds, and enhance independent R&D capabilities.

2. Plan ahead and reserve patents. Since 2015, Huawei has received more than US$1.4 billion in intellectual property revenue. At the same time, Huawei has conducted extensive cross-licensing negotiations with major patent holders in the telecommunications industry over the past 20 years. Patents are just carriers, and relying on patents to make profits (reduce losses) is the ultimate goal. When faced with a lawyer's letter, a company can gain more negotiating initiative only if it has more patents. (Source: China Intellectual Property Rights Protection Assistance Network)

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