Huawei demands $1bn in patent licensing fees from Verizon

The fees relate to networking gears, wireline infrastructure, internet of things and other products

Huawei has urged US telecoms giant Verizon to pay licensing fees of around $1 billion for more than 230 of its patents.

The fees being demanded from the US telecoms operator relate to the use of networking gears, wireline infrastructure, internet of things and several other technologies and products, according to Reuters.

Verizon doesn't directly purchase equipment from Huawei but relies on other vendors using Huawei technology. Huawei has also directly approached some of those companies over what it regards as infringements of its intellectual property.

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In February, Huawei wrote a letter to Verizon, accusing the firm of violating 238 of its patents. In the letter, Huawei told Verizon that it believes that Verizon would "see the benefits to taking a license to our patent portfolio".

In past two months, the two companies have discussed the matter through phone calls and emails. Last week, their representatives met in New York to discuss whether Verizon's use of gear actually infringes Huawei patents.

Neither Verizon nor Huawei responded to requests for comment, according to Reuters.

"These issues are larger than just Verizon," a Verizon spokesman told Reuters.

Any issue involving Huawei has implications for our entire industry and also raises national and international concerns

"Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raises national and international concerns."

For the past one year, Huawei has been in rising conflict with the US government over charges that its technology could be used by China's government for surveillance. Huawei has denied the allegations.

Verizon and other major US carriers have been barred from using Huawei products in their domestic wireless networks. In recent months, the US government has also pressed its allies to bar Huawei from forthcoming 5G mobile roll-outs.

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The US government is also concerned that allowing the communications industry to become dominated by the Chinese company will weaken rivals, such as Nokia and Ericsson, thus limiting options in the long run - not just for the routers and switches that comprise the backbone of networks, but also radio-access-network gear, such as antennas and base stations.

Last month, the Trump administration placed Huawei on its "Entity List," barring the company from doing business with US firms without prior government approval.

Huawei, however, has repeatedly rejected the allegations levelled against it, saying its technology is safe to use and that it isn't controlled by the Chinese government. The company also accused the US government of unfairly targeting its products.

Earlier this month, a Chinese government official reportedly warned major US technology firms that they would face serious consequences if they decide to comply with Trump administration's ban on Chinese companies.

The move followed a warning by Chinese officials to set up their own blacklist of "unreliable entities" in retaliation for the US ban.

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