Huawei Has To Pay Royalties Or Face Phone Sales Ban In UK

Gladys Abbott
June 12, 2017

The High Court, in a ruling earlier this month, ordered Huawei to pay royalties on millions of smartphones the Chinese company sells across the globe to United States company Unwired Planet that owns thousands of patents.

Patent litigation of this type is commonplace in the smartphone industry, and Huawei isn't the only company caught up in this particular battle. It now looks like the Chinese manufacturer has lost and will have to pay up in order to avoid a sales ban in the UK. The Chinese smartphone maker is the 3rd largest in the world after Apple and Samsung, selling 140 million handsets previous year. Two of those patent are infringed by Huawei as well as Samsung. The case relates to six distinct patents regarding various technologies, including LTE standards. Samsung and Google were also implicated, and the former has already settled out of court. As one of the world's leading intellectual property rights (IPR) owners, Huawei has a strong record of respecting the IPR of others, in addition to doing whatever is required to protect our own such IPR assets. In China, the percentage would be even lower.

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Appealing against a global sales penalty is understandable as it would be a big amount compared to the UK. However it would not be a blow to Huawei's profits as it is, after all, a very small share of the retail price. The case with Unwired Planet has gone on for three years.

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