Huawei seeks licensing fees from Japanese companies to ensure stable income

Huawei is in talks with about 30 Japanese companies to negotiate licensing fees for using its patented expertise, in accordance to iFeng News. The transfer highlights the Chinese telecom big’s rising dependence on income from such licensing agreements amid US sanctions. While it’s unusual for a serious producer to straight negotiate patent fees with smaller purchasers, Huawei is exploring this strategy due to the difficult enterprise setting attributable to commerce restrictions. Huawei is in search of different sources of stable income and patent royalties from small companies and startups, which aren’t topic to commerce restrictions. Sources from Japanese companies point out that Huawei is requesting funds ranging from a set charge of fifty yen (35 cents) or much less per unit of kit to 0.1% or much less of the unit’s value. Huawei holds a major share of standard-essential patents, that are essential for using wi-fi communication requirements reminiscent of 4G and Wi-Fi. [iFeng News, in Chinese]