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A patent cross-licensing agreement was signed between Huawei and OPPO

Huawei under display

Huawei is a Chinese tech giant. Its biggest rival is OPPO. Currently, Huawei has signed a patent with Oppo. This patent concerns the cross-licensing agreement between the two companies. Given this patent, both companies can use the patented tech of one another in their products. This step can be a result of U.S. sanctions against Huawei. These sanctions have deeply impacted business of Huawei.

Huawei holds a huge portfolio comprising around 100,000 patents worldwide. Given the 5G technology, Huawei is the top patent holder. Where 5G tech is the next step in telecommunication. It is capable of powering artificial intelligence as well as autonomous cars.

This agreement holds immense benefits for both companies. As per Huawei, it will aid in counteracting the impact of U.S. sanctions. These sanctions have made it quite challenging for the company. Since the company can’t access the components and tech it requires for its products. By sharing the patented technology, Huawei has a chance to produce new revenue. Thus, continue to compete in the market.

By accessing the patented technology of Huawei, Oppo can enhance its own products. This opportunity will provide OPPO with a competitive advantage over others. Thus, helping it to perform better and expand its roots in the market. Adler Feng, the Chief Intellectual Property Officer at OPPO, mentioned that this cross-licensing agreement indicates that both companies respect and value the intellectual property of each other. He acknowledged this agreement as a win-win situation.

However, the official details of this deal are still unknown. In 2021, Huawei declared that it would monetize its patent portfolio. The company stated that it will charge $2.50 per device to license its technologies. Furthermore, Huawei mentioned that it expects to generate revenue between $1.2 billion to $1.3 billion via licensing its intellectual property given the time frame of 2019 to 2021.

U.S sanctions on Huawei

The U.S. government levied limitations on Huawei given the concerns regarding national security. These concerns are based on the allegations that Chinese government could utilize telecommunication equipment of Huawei for surveillance and other nasty activities.

Specific details of sanctions on Huawei are variable. But some key restrictions comprise the following:

  • ban on U.S. companies doing business with Huawei
  • restriction on Huawei from taking part in government contracts
  • ban on the sale of U.S. technology and components to Huawei without a license
  • ban on using U.S. technology in its products

These restrictions have badly impacted Huawei’s business. Thus, forcing the company to find out new ways of generating revenue to keep up its competitive position in the market.