Huawei to charge loyalty fee for its 5G patents

As the Chinese technology company attempts to diversify the revenue sources, Huawei will start charging phone manufacturers a royalty for their patented 5G patents in view of the effect of the United States sanctions on other areas of the industry.

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Huawei will charge phones a license fee of $2.5 per user for the rights to its 5G patents, according to the official press release. The company will make $1.2 billion to $1.3 billion by selling its patents between 2019 and 2021 according to Jason Ding, director of Huawei's Department of Intellectual Property Rights.


The business will facilitate such revenue losses in other sectors of its market such as mobile phones due to US sanctions on key patents relating to cellular technology. Previously, Huawei charged royalties for companies such as Apple.


So-called global standards need to be developed when implementing a new wave of cellular technology. There are protocols, techniques, and models for the global interoperability of 5G networks and smartphones.

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The business is the most technically active contributor to 5G standards in the area of patent licenses and adheres to the principles of FRAND.


HUAWEI is far and away from the pioneer in the number of 5G patents. According to GreyB Technology Consulting and Intelligence, HUAWEI had 3,000 registered 5G patents as of March 2021.

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