Huawei Extends Mobile Patents Deal with Nokia Despite US Curbs
(Bloomberg) -- Huawei Technologies Co. has secured an extension to a patent licensing deal with Nokia Oyj, suggesting the Chinese company continues to lead in networking technology despite years of punishing US sanctions.
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The announcement indicates appetite for access to Huawei’s next-generation telecom patents remains strong, despite US accusations the Chinese giant poses a threat to national security. Huawei didn’t disclose details of the deal, saying the terms are confidential.
Huawei is trying to open up new markets and businesses after US tech export restrictions gutted its smartphone business and curtailed the sale of advanced gear in developed markets. In response, it has begun levying royalties from the world’s biggest smartphone brands, including Apple Inc. and Samsung Electronics Co., after first announcing plans to broaden its licensing business from 2021.
Huawei has signed more than 20 patent license agreements this year, covering smartphones, connected vehicles, networking and the Internet of Things, according to Alan Fan, the company’s global head of IP.
“In the automotive industry alone, we reached deals with around 15 car makers for use of our advanced wireless technologies, including well-known names such as Audi, Mercedes Benz, BMW, Porsche, Renault, Suzuki, Lamborghini, Subaru and Bentley,” he said in a prepared statement.
Intellectual property collaborations are among the few areas Huawei can still make significant headway in developed markets like Europe.
The UK has decided to remove the Chinese company from its 5G networks by 2027, though there’s been a recent delay in certain specific restrictions. A senior European Union official also urged countries like Germany last month to stop using high-risk 5G suppliers, without naming Huawei.
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A series of export bans imposed during the Trump administration barred Huawei from accessing an array of critical American technologies, curtailing its ability to make advanced products from smartphones to servers. That campaign against China’s tech giants expanded during the Biden administration, which also took aim at Chinese-made semiconductors.
Huawei’s net income fell 40% in the first three quarters of 2022, though it spent heavily on research to safeguard its lead in fifth-generation or 5G networking.
Huawei remains the biggest holder of patents in ultra-fast broadband technology, fast becoming the mainstream for mobile users around the world. It’s also seeking alternative sources of income by selling artificial intelligence and wireless communications gear to less-traditional customers from automakers to coal mines and industrial parks.
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