Huawei Announces Royalty Rates for Patents in 5G and IoT Industries

During an innovation and intellectual property rights event in Shenzhen, China, Huawei revealed its licensing fees for various patent-protected technologies, including 4G and 5G handsets, Wi-Fi 6 devices, and IoT products. Mr. Song Liuping, Chief Legal Officer of Huawei, emphasized the company’s commitment to sharing innovation patents with the world for the sake of mutual development.

For every 4G handset, a maximum royalty fee of $1.5 will be charged, while 5G handsets will incur a fee of $2.5. Wi-Fi 6 user devices will be subject to a fee of $0.5, and IoT Centric devices will have a 1% fee based on the sale price, capped at $0.75. Advanced IoT devices will fall within the price range of $0.30 to $1.

Huawei’s Vice President and Head of Intellectual Property, Alan Fan, revealed that the company has already signed nearly 200 bilateral patent licenses, with over 350 companies having received licenses through partnerships. In 2022, Huawei’s license revenue reached $560 million.

As a leading patent holder, Huawei possesses over 3,000 5G-related patents, surpassing any other company in the world. The Chinese telecommunications giant has also played a significant role in shaping ICT standards, including multimedia, Wi-Fi, and cellular encryption schemes.

Huawei takes pride in its status as one of the world’s largest patent holders, having invested $140.55 billion in research and development over the past decade. In 2022 alone, the company allocated $23.23 billion for R&D, accounting for 25.1% of its total revenue for that year. The European Commission ranks Huawei fourth in the world in terms of industrial R&D investment for 2022.