Huawei's Patent Surge: 120,000 Patents Drive Licensing Boom
Huawei, the Chinese tech giant, has seen a significant surge in its patent portfolio. As of 2022, it holds over 120,000 active patents, a substantial increase from the around 85,000 it had in 2019. This growth has led to a strategic shift in the company's revenue streams, with patent licensing taxes playing a crucial role.
Huawei's patent licensing taxes have intensified in recent years, particularly in domains like 5G, Wi-Fi, audio, and video compression technology. In August 2023, the company signed a long-term patent licensing agreement with Ericsson, covering patents essential to various cellular technology standards. This follows a similar agreement with Xiaomi, ending a patent infringement lawsuit and establishing a global cross-licensing deal for communication technologies, including 5G.
Huawei's patent portfolio is vast and influential. It owns about 10% of the world's 4G patents and around 20% of patents related to 5G, Wi-Fi 6, and H.266 technology. This has led to over 200 bilateral licensing agreements with over 350 companies, including Oppo, Samsung, Audi, and Lamborghini. These agreements cover a wide range of fields, from smartphones to connected cars, with over two billion smartphone devices and eight million connected vehicles licensed with Huawei's patents annually.
Huawei's patent licensing revenue has grown significantly, reaching USD 560 million in 2022. While this is a minute percentage of its total revenue of USD 93.5 billion, it underscores the company's strategic shift towards alternative revenue streams, particularly in the face of challenges like the US clampdown. With over 120,000 active patents, Huawei continues to be a major player in the global patent landscape.
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