Huawei struck a long-term global patent licensing agreement with fellow vendor Ericsson, covering the respective sale of network infrastructure and consumer devices, as well as granting access to each other’s technologies.
The Chinese vendor stated the agreement covers patents essential to a wide range of standards set by bodies including 3GPP, ITU, IEE and IETF, covering 3G, 4G and 5G mobile technologies.
It did not reveal the length of the agreement, but Emil Zhang, head of the European IPR department at Huawei, told a briefing it is the first “long-term” deal the companies had entered into.
With regards to royalties, Zhang stated only that there is a reciprocal arrangement between the two, as both will use each other’s patents.
“We need to pay Ericsson and Ericsson need to pay Huawei, so there is some net payment from one company to the other company.”
Zhang dismissed the idea Huawei could use the agreement to its advantage and boost its reputation in Europe, which has been damaged in recent years.
He explained IP cross-licensing agreements were “very normal industry practice” and will create value for both parties.
“This is nothing about Huawei using Ericsson as a vehicle into Europe…it’s just a recognition of the industry role in this IP field, as well as the two companies’ recognition of each other’s IP value.”
Huawei claims to have spent CNY845 billion ($125 billion) on R&D over the past decade and tops the rankings for submissions filed with the European Patent Office in 2022, with 4,505 applications.