Huawei has paid US$ 4.8 billion in patent fees to US companies.
Song Liuping thinks that some American politicians want to ban the implementation of Huawei’s patent right, which is a very dangerous signal. He said that Huawei will not weaponize its patent portfolio, but will adopt an open and cooperative attitude and discuss patent licensing and authorization with various manufacturers and operators in accordance with the principle of fairness, reasonableness and non-discrimination.
"If intellectual property becomes a tool for politicians, it will hurt people’s confidence in the patent protection system. If some governments selectively deprive some companies of intellectual property rights, it will destroy the foundation of global innovation. " Huawei chief law officer Song Liuping said.
On June 27th, Huawei released a white paper on innovation and intellectual property rights in Shenzhen, and called for not politicizing intellectual property issues. He said that intellectual property is the foundation of innovation, and politicizing intellectual property issues will threaten the progress of global technology.
Not long ago, US Senator Marco Rubio proposed an amendment to prevent Huawei from carrying out damages through the US patent court. If the amendment is finally passed by the US Congress, the patents that Huawei has applied for in the United States will be equivalent to being invalid. It is reported that Huawei applied for 3,195 patents in the United States from 2017 to January 2019. In addition, it is reported that Huawei has initiated a request for licensing fees for more than 230 patents to Verizon, an American telecom operator, totaling more than $1 billion.
Song Liuping thinks that some American politicians want to ban the implementation of Huawei’s patent right, which is a very dangerous signal. He said that Huawei will not weaponize its patent portfolio, but will adopt an open and cooperative attitude and discuss patent licensing and authorization with various manufacturers and operators in accordance with the principle of fairness, reasonableness and non-discrimination.
"The negotiation with Verizon is a specific negotiation in normal business, which does not mean that Huawei will change anything from now on. This is an ongoing process, and we will continue to conduct such negotiations with relevant parties in the industry." Song Liuping told reporters, including CBN, that Huawei will have related intellectual property income, but it will still be a company mainly engaged in product sales, not a company mainly engaged in patent income.
Eighty percent of the patent fees are paid to American companies.
Recently, it was reported that Huawei charged patent fees to Verizon, an American operator, asking it to pay patent fees for using more than 230 patents of Huawei, totaling or exceeding $1 billion.
VerizonWireless used to be the second largest mobile operator in the United States. After the acquisition of Alltel (the fifth largest operator in the United States) from Atlantis Holdings LLC, Verizon Wireless has 83.7 million mobile users, surpassing AT&T Wireless to become the new overlord of mobile communication in the United States.
On this issue, Song Liuping said in an interview with a reporter on the spot that Huawei’s intellectual property rights are not radical policies, but more about protecting the safety of product operation, and will not weaponize them, and will not pursue high licensing fees, but reasonable licensing fees. Secondly, patent licensing is generally normal for the communication industry, including chip manufacturers, equipment manufacturers and operators, including enterprises in China and the United States. Cross-licensing of enterprises is an ongoing activity, not just started today. Thirdly, Huawei is one of the main holders of 3G, 4G and 5G core patents. It is both a licensor and a licensee. It is a right and an obligation to obtain benefits through licensing, and it is authorized to a third party according to the principle of fairness, reasonableness and non-discrimination (FRAND).
"The negotiation with Verizon is a specific negotiation in normal business, which does not mean that Huawei will change anything from now on." Song Liuping told reporters that Huawei will have related intellectual property income, but it will still be a company mainly engaged in product sales, not a company mainly engaged in patent income.
Song Liuping thinks that some American politicians want to ban the implementation of Huawei’s patent right, which is a very dangerous signal. "We believe that intellectual property protection is actually an important foundation for the development of the United States. Intellectual property rights are also protected by the US Constitution. If such a law is passed, it will have a devastating impact on global innovation. If such a law is passed, it will be terrible.
He said that if such a law is passed, Huawei will also use legal laws to protect Huawei’s rights.
"Intellectual property is private property protected by law. Huawei advocates solving intellectual property disputes through legal procedures. In the course of Huawei’s operation and development over the past 30 years, no case has been found by the court to have maliciously stolen intellectual property rights, and Huawei has not been liable for compensation by the court. " Song Liuping said that the rise of Huawei relies on long-term R&D investment, and Huawei’s rise stems from the sweat of 80,000 R&D personnel.
According to the First Financial Reporter, the white paper released by Huawei that day was entitled "Respecting and protecting intellectual property rights is the only way for innovation", which introduced in detail Huawei’s practice and contribution in innovation and intellectual property protection.
According to the white paper, by the end of 2018, Huawei had obtained 87,805 authorized patents, of which 11,152 were American patents. Since 2015, Huawei has accumulated more than $1.4 billion in intellectual property revenue. In addition to its own patents, Huawei has paid more than $6 billion in patent fees for users to legally use patents of other companies, and nearly 80% of them have been paid to American companies.
Song Liuping said that even if customers in some countries don’t buy our products directly, they are actually using these core patents and sharing Huawei’s technological contribution.
Take 5G as an example. In 2009, Huawei invested 600 million US dollars to start the research on 5G technology and standards. After 2016, an additional investment of $1.4 billion was made, and users accelerated the research and development of end-to-end 5G commercial products. So far, Huawei has taken the lead in investing 2 billion US dollars in 5G research and development. It exceeds the total investment in 5G R&D of major equipment suppliers in the United States and Europe.
At present, Huawei has more than 80,000 patents worldwide, including more than 10,000 patents authorized by the United States.
Song Liuping said that Huawei will not weaponize its patent portfolio, but will adopt an open and cooperative attitude and discuss patent licensing and authorization with manufacturers and operators in accordance with the principle of fairness, reasonableness and non-discrimination (FRAND).
No company can lead the world by stealing.
Song Liuping said that according to the US Constitution, intellectual property is private property. If intellectual property becomes a tool of politicians, it will hurt people’s confidence in the patent protection system. If some governments selectively deprive some companies of intellectual property rights, it will destroy the foundation of global innovation.
Last year, Huawei’s sales revenue exceeded $100 billion. None of the products have been successful, and none of the key technologies have anything to do with the alleged infringement of trade secrets that Huawei experienced in the past.
He said that no company can lead the world by stealing.
"It is common for enterprises to have intellectual property disputes in their global operations, and Huawei is no exception. We believe that these disputes should not be politicized. Intellectual property rights are private property protected by law, and we advocate solving these disputes through legal procedures. " Song Liuping said.
A reporter at the interview site asked questions about the past judgment between Huawei and T-Mobile.
In 2009, Huawei Equipment USA became the mobile phone supplier of T-Mobile USA. According to the procurement process of T-Mobile USA, Huawei equipment samples provided to T-Mobile USA must be submitted and tested in the laboratory of T-Mobile USA, and pass the robot entry test before mass production. Then, Huawei was accused of stealing the technology used by T-Mobile America to test smartphones. In 2017, after a US jury ruled that Huawei violated the contract with the network operator, Huawei was fined $4.8 million for T-Mobile.
At the beginning of this year, the lawsuit between Huawei and T-Mobile was re-filed by the US federal inspection agency.
Song Liuping told reporters that there has never been a court ruling that Huawei stole intellectual property subjectively and maliciously, and paid compensation. This is also the content of the industry accusing Huawei. "In the past, 4.8 million refers to contract breach, not malicious theft of intellectual property rights." Song Liuping said that intellectual property litigation is actually a legal issue and should be tried by the court, not politicized.
On the question of whether American companies can bypass Huawei’s patents, Song Liuping emphasized that Huawei is an enterprise in the ICT field and will research, develop and produce its own products according to international standards. So in fact, Huawei is one of the main contributors to standards, and major enterprises in the industry are sharing Huawei’s achievements. Huawei is also the main holder of standard essential patents. Especially after 4G and 5G, these patents have been applied and registered, including the United States and Europe. These authorized patents will be used according to the standards.
It is worth noting that at present, some American enterprises have crossed the government sanctions and resumed supplying Huawei in China.
Sanjay Mehrotra, CEO of Micron Technology, said in a conference call on 25th that after research, the company has confirmed that it can sell some products to Huawei that are not subject to the ban of the US Department of Commerce, and the shipment has started in the past two weeks. He said, "We believe that we can legally resume the shipment of some existing products, because they are not within the scope of export management norms or the restrictions of the entity list. However, there is still considerable uncertainty in Huawei’s situation. " This caused Micron’s share price to soar by nearly 15% after the opening on the 26th, and led to the rise of other chip stocks.