Huawei signs cross-licensing deal with China’s largest competitor

Before Trump era sanctionsHuawei briefly topped the world’s most active company on the market. The largest phone manufacturing companyIt surpassed Apple and Samsung in terms of shipments. As a sign of the decline in sales, Huawei announceIt recently signed a patent cross-licensing arrangement with its largest domestic competitor. oppo The parent company of OnePlusAs a subsidiary to one of China’s top electronics manufacturers, it now has global rights for Huawei Coveted 5G patents.

The companies did not disclose the financial terms of the deal, but we have an idea of ​​the money involved thanks to information Huawei has shared in the past. When did the company announce the deal? announce It stated it had plans to monetize patent portfolio more aggressively last ye and that it would charge phone companies a “reasonable $2.50 per device for licensing its technologies. The move will also generate an additional revenue of between $1.2 billion to $1.3 billion between 2019 and 2021, Huawei said. Oppo and Vivo, both owned by China, are two examples. BBK Electronics) shipped More than 51 million smartphonesLast quarter, there was a lot at stake.

Oppo has also access to some key technologies. Around 18.3% of Huawei’s 5G patents were included in the Standard Essential Patent (SEP), which means they were essential to the 5G standard. Huawei was the company with the most commonly used SEP.

It will be interesting to see whether the agreement attracts the attention of legislators in the US or other parts of the globe. BBK has remained largely unnoticed by regulators and mainstream media for the past decade. Huawei and ZTEHe does not have. The company’s fragmented portfolio of brands makes it appear smaller than it actually is. It has been a major phone manufacturer in the world for years.