Huawei announces new cap on handset royalties to support 5G adoption

Nieuws Mobiel Wereld 16 MAR 2021
Huawei announces new cap on handset royalties to support 5G adoption

Huawei has announced plans to cap royalties it charges for patented 5G technology. In a statement outlining its innovation achievements, the company said it hopes the new royalty rate will help stimulate the adoption of 5G. 

Huawei claims to be the "largest technical contributor" to 5G standards and said it follows fair, reasonable and non-discriminatory (FRAND) principles when licensing its technology. For every multi-mode 5G smartphone, Huawei will provide a "reasonable" percentage royalty rate of the handset selling price and a per unit royalty cap at USD 2.5, the company said.

Huawei has consistently ranked among the world's top companies for patent applications and granted patents. By the end of 2020, Huawei held over 100,000 active patents in more than 40,000 patent families worldwide. In 2019, Huawei ranked No. 2 in Europe and No. 10 in the US in terms of the number of patents granted, and the company is also the largest patent holder in China.

The company estimates its patent licensing revenues will total USD 1.2-1.3 billion in 2019-2021. 

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Wholesale, 5G, Handsets, Licences & sales agreement, Research and development

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