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Huawei Slaps Verizon With $1B+ Patents Bill – Reports

Ray Le Maistre
6/13/2019

Make no mistake: China's Huawei Technologies has no intention of shying away from its ongoing confrontation with the US. In addition to legal challenges against the US authorities with regards to various trading restrictions, Huawei has slapped major service provider Verizon with a demand for more than $1 billion in patent payments for a range of core, wireline and IoT technologies being used in its network, according to a Wall Street Journal report.

Verizon is not a Huawei customer: The vendor believes that Verizon should pay license fees to use the hardware and software deployed in its commercial network that has been supplied by other vendors but which are based in part on Huawei patents. (The South China Morning Post has a thorough recap of the situation that isn't behind a paywall.)

Why this matters
Huawei was never going to sit on the ropes and soak up the punches being thrown at it by the US authorities. It has rallied its media machine to defend itself and pump pro-Huawei messaging into the market, put its lawyers to work and now, it seems, is going on the financial offensive.

This move will also freak out the rest of the US carrier fraternity because Verizon looks like the starting point, but any such demands would also be relevant to AT&T, T-Mobile, Sprint, CenturyLink et al.

Things could get out of control if a settlement between the US and China, and the US and Huawei, is not agreed very soon.

For more on this topic, see:

— Ray Le Maistre, Editor-in-Chief, Light Reading

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James_B_Crawshaw
James_B_Crawshaw
6/14/2019 | 3:53:04 AM
Who's next?
AT&T uses Huawei equipment in Mexico so perhaps they will refrain from suing them but if the others don't buy Huawei kit and continue to use Huawei IP then they are fair game. 
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