Huawei is reportedly chasing Verizon for $1B in patent licensing fees

Is Huawei in its right to demand billions from US carriers for patents

-China trade spat, Huawei is reportedly pressuring Verizon to pay licensing fees on over 230 patents worth around 1 billion USA dollars. Is it the opening of a new chapter in the clash between the Chinese giant and the USA government?

Reportedly, the US president Donald Trump's dispute with China has been extended to Verizon, which relies on other companies, that use technology owned by Huawei.

The patents range from core network equipment, wireline infrastructure to internet-of-things technology, the Journal reported.

Companies involved, including Verizon have notified the USA government as the dispute comes amid a growing trade feud between China and the United States.

If you didn't know that Verizon owns money to Huawei for patent licensing, you do now.

A new report from Reuters claims that Huawei is in a patent dispute with Verizon for unregulated use of an estimated 230 patents. According to sources that The New York Times talked to, on the condition of anonymity, the patent claims made by Huawei would amount to over $1 billion in total.

Adding that the latest call of Huawei goes beyond Verizon and could compromise entire USA telecommunication networks, a spokeswoman for Verizon communications said in terms of anonymity, given the extent of vulnerability regarding the subject-matter, "These issues are larger than just Verizon". Representatives from both firms also apparently met last week in NY to discuss some of the patents, which include core network equipment and wireline infrastructure.

Huawei and USA wireless carriers T-Mobile US Inc and AT&T Inc did not respond to Reuters' requests for comment. The company cites comments by government officials that it says appear to indicate the USA may have economic motives for the ban, and cites the use of its equipment in other European and North American markets.

The battle with Huawei and the USA has been brewing for some time, but it started to heat up previous year as the Trump administration's trade negotiations with China soured.

Huawei has been locked in battle with the U.S. government for more than a year now after United States national security experts accused the Chinese telecoms giant of having "back doors" in its equipment that could allow China to spy on the US. "Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and global concerns", Reuters quoted a Verizon spokesman as saying.



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