Huawei reveals royalty rates for patent license programs

Huawei, one of the world’s largest patent holders, has revealed royalty rates for its handsets, Wi-Fi, and IoT patent license programs.
Alan Fan, Vice President, Head of Intellectual Property Rights DepartmentHuawei is a SEP owner for 4G and 5G handsets, Wi-Fi 6 devices, and Internet of Things (IoT) products.

The rate caps for 4G and 5G smartphones are $1.5 per unit and $2.5 per unit, respectively. Huawei’s royalty rate for Wi-Fi 6 consumer devices is $0.5 per unit. The rate for IoT-Centric devices is one percent of the net selling price, capped at $0.75. The rate for IoT-Enhanced devices ranges from $0.3 to $1 per unit.

Alan Fan, Vice President and Head of the Intellectual Property Rights Department at Huawei, iterated that a positive cycle where innovators are protected, rewarded, and encouraged is key to sustainable innovation.

To date, Huawei has entered into almost 200 bi-lateral patent licenses. In addition, over 350 companies have obtained licenses to Huawei’s patents through patent pools. Under these licenses, Huawei’s total past royalty payment is about three times its total royalty collection. Huawei’s licensing revenue amounted to $560 million in 2022.

Huawei said its cumulative R&D investment over the past ten years totaled CNY977.3 billion. In 2022, Huawei’s R&D expenditure stood at CNY161.5 billion, or 25.1 percent of its revenue. The 2022 EU Industrial R&D Investment Scoreboard put Huawei No. 4 worldwide.

Huawei has entered into patent license agreements with leading technology players such as Samsung and Oppo, and top automakers including Mercedes-Benz, Audi, BMW, Porsche, Subaru, Renault, Lamborghini, and Bentley.