Verizon settles with Huawei over patent disputes
Huawei and Verizon (the parent company of Engadget) have settled their old patent dispute. The dispute dates back to 2019 when Huawei said it approached Verizon for licensing some of its technologies. After nearly a year of negotiations, talks between the two companies broke down on January 21, 2020 and Huawei continued to files numerous telecom lawsuits in Texas courts. At the center of the controversy were 12 patents related to the standards that Huawei said Verizon was using in its infrastructure. At the time, Verizon dismissed the lawsuits, claiming they were “nothing more than a PR stunt.”
It has since changed its melody. “Verizon is pleased with the agreement reached with Huawei that includes patent litigation. While the terms of the settlement are not being disclosed, our team did an extraordinary job bringing to a close this protracted issue, “Verizon spokesman Rich Young .
For Huawei, this is exactly the kind of result the company had hoped for when it announced in early 2021 that it planned to monetize its patent portfolio more aggressively. While the US and other parts of the world have banned it from their national 5G networks, the Chinese company is ideally placed to make money on licensing fees. It has among the most patents related to the 5G standards of every company in the world. To that end, he estimated that the licensing strategy could help it generate up to $ 1.3 billion in additional revenue between 2019 and the end of 2021.
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