Samsung has now handed 98 of its American patents to Huawei, in addition to the 81 patents it granted to Huawei in 2019. To put an end to their patent challenges, the two companies reached a cross-licensing agreement in 2019. The patents transferred span a wide range of areas, including telecommunications, charging, cameras, displays, and more. Furthermore, South Korean family patents registered in the United States have been transferred.
Samsung Licensed 98 Huawei Patents As Part Of A Cross-licensing Agreement
Cross-licensing agreements might result in one party paying more licensing fees than the other due to variations in the number and quality of their respective patent portfolios. Xiaomi and Microsoft agreed to similar cross-licensing arrangements in 2016, but Xiaomi likely paid more because it possesses fewer patents.
Telecommunications-related patents, in which Huawei has more patents than Samsung, were at issue in the two firms’ legal struggle. Because Samsung has fewer 5G patents than Huawei, it is likely that the patent transfer is linked to the cross-licensing agreement.
Since the US sanctions and the separation of its Honor smartphone line, Huawei’s revenue from intellectual licensing has increased. The agreement’s renewal is most likely linked to the three-year anniversary of the last patent transfer.
This is not Huawei’s first cross-licensing agreement. In fact, the company just announced a similar agreement with the Chinese maker Oppo. The new agreement covers standard cellular communications, including 5G communications. Both companies say that the deal benefits them both because it allows them to leverage each other’s strengths.
As a means of settling intellectual property licensing conflicts, the new agreement encourages courteous communication and respect for each other’s patent values. The new pact is expected to boost global innovation and research pace. Huawei holds a number of patent packages covering 5G, Wi-Fi, audio, and video. It will also give clients with more competitive goods and services.
Both companies will be hoping that the new cross-licensing agreement signals the beginning of a period of rapid expansion and development. Huawei will benefit the most from the agreement as a result of the US crackdown on its operations. Prior to the crackdown, Huawei was the world leader in 5G and 6G research, and it had secured major infrastructure contracts in a variety of nations. Although the exact terms of the agreement are unknown, it is expected that both businesses will make use of all of its provisions.