Huawei requested licensing fees from about 30 telecoms-related companies in Japan using its patented technology, with Nikkei Asia claiming the move to negotiate directly with small manufacturers is unusual for a larger vendor.

A source told the news outlet Huawei was holding discussions with small- and medium-sized companies for the use of its wireless communication modules.

The China-based vendor is reportedly seeking fees ranging of JPY0.50 ($0.36) or less per module to 0.1 per cent or less the price of the system.

When Huawei announced a global cross-licensing agreement with Oppo in 2022, head of IP Alan Fan said licensing is not a separate business unit but its patent revenue is increasing, with inbound royalties totalling hundreds of millions of dollars annually.

Fan added its Wi-Fi and audio codec patents “are some of our most valuable assets in our IP portfolio”.

Sanction-hit Huawei is looking for new revenue streams to drive growth, targeting the automotive sector and focusing more on the domestic market to make up for declines in its smartphone business and bans on its 5G equipment in many countries.