Chinese tech giant Huawei owns most 5G patents than any other tech company, reveals a study done by two firms – GreyB Services Pte., a technology research firm, and Amplified AI Inc., an analytics firm. This will ensure that the company will still have much to gain on licensing despite the US trade ban.
In the next-generation 5G technology patent world, six firms control an 80 percent patent market share with only one being a US-based company – Qualcomm Inc. Other companies include Huawei, Samsung Electronics Co., LG Electronics Inc., Nokia Oyj, and Ericsson AB.
This will be problematic to US president Trump who has been very keen on cracking down Huawei accusing it of being a threat to national security. It seems the US will still have to pay Huawei to use some of its patents in building their 5G infrastructure.
“Even if they hire some other company to build the 5G infrastructure, they still have to pay the Chinese company because of the intellectual contribution to develop the technology,” says Deepak Syal, director of GreyB Services Pte.
Recent restrictions have included the ban on the sale of silicon chips that have been made by US know-how to the Chinese tech giant. But with Huawei holding most patents considered key to the 5G industry standards, it means the US will have to pay royalties to the company.
“…even by blocking, they are not helping in the end because they’re paying money in terms of royalties,” says Syal.
Meanwhile, the US government is still continuing its fight against Huawei and is more determined than ever to lobby other countries to follow suit. The UK is currently conducting a fresh review on whether to involve Huawei in its 5G network, even after granting the company a limited role a few months ago.