In a significant move towards fostering innovation and technology sharing, Huawei, one of the leading global patent holders, has announced the royalty rates for its patent license programs.
This eagerly awaited development highlights Huawei’s commitment to supporting the sustainable growth of industries worldwide through the sharing of cutting-edge innovations.
In this blog post, we delve into the details of this announcement and explore the implications of Huawei’s patent licensing initiatives.
Sharing Innovations for Global Development
At the recent flagship event held in Shenzhen, titled “Bridging Horizons of Innovations: Sharing IP, Driving Innovation,” Huawei’s Chief Legal Officer, Song Liuping, expressed the company’s dedication to sharing their groundbreaking inventions with the world.
The event featured enlightening sessions led by experts from diverse technological domains, covering topics ranging from 5.5G research to audio/video technologies and mobile phone advancements.
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Fair and Reasonable Licensing Principles
Huawei firmly upholds fair, reasonable, and non-discriminatory (FRAND) principles when licensing its standard essential patents (SEPs). As a testament to this commitment, the company unveiled the royalty rates for various categories, including 4G and 5G handsets, Wi-Fi 6 devices, and Internet of Things (IoT) products.
With the rate caps set at US$1.5 and US$2.5 per unit for 4G and 5G handsets, respectively, Huawei aims to incentivize both innovation creation and adoption. Wi-Fi 6 consumer devices carry a nominal royalty rate of US$0.5 per unit, ensuring accessibility for a broader consumer base.
For IoT devices, the royalty rates range from US$0.3 to US$1 per unit, depending on the type of device.
Encouraging Sustainable Innovation
Alan Fan, Vice President and Head of Huawei’s Intellectual Property Rights Department, highlighted the significance of nurturing a positive cycle that protects and rewards innovators.
Fan emphasized that reasonable royalty rates will foster sustainable innovation by inspiring the creation and adoption of groundbreaking technologies. Huawei’s efforts in this regard have resulted in nearly 200 bilateral patent licenses and over 350 companies obtaining licenses through patent pools.
With Huawei’s total royalty payment surpassing its royalty collection, this demonstrates the company’s dedication to supporting innovation beyond its own boundaries.
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Global Collaboration for Inclusive Innovation
Tomas Lamanauskas, Deputy Secretary-General of the International Telecommunication Union, acknowledged Huawei’s influential role in supporting inclusive innovation on a global scale.
As the world faces pressing challenges and strives to achieve the Sustainable Development Goals (SDGs), conducive policies and frameworks become vital in nurturing innovation ecosystems.
Huawei’s commitment to collaboration and technological cooperation resonates with the efforts needed to advance towards a better future.
Huawei’s R&D Investment and Industry Collaborations
Huawei’s unwavering dedication to research and development (R&D) is reflected in its substantial investments. Over the past decade, the cumulative R&D investment has exceeded CNY977.3 billion, with 2022 alone witnessing an allocation of CNY161.5 billion (25.1% of revenue) towards R&D initiatives.
This investment has positioned Huawei as the fourth-ranked company worldwide in the 2022 EU Industrial R&D Investment Scoreboard.
Moreover, Huawei’s collaborations with leading tech industry players, including Samsung and Oppo, as well as prominent automakers such as Mercedes-Benz, Audi, and BMW, underscore the company’s commitment to fostering innovation across various sectors.
