Huawei entered 560 million dollars in 2022 thanks to its patent agreements. It is the first time in its history that the company has made public the income obtained by said area of its business, according to what Bloomberg has pointed out. (Zolpidem)
This amount is slightly higher than what it has achieved over the past two years from sales of its smartphones, which have suffered a sharp decline since the sanctions and measures against the company by the United States began. This has been confirmed Alan Fan, Head of Huawei Intellectual Property Rights Department.
Despite the sanctions that Washington has imposed on him, and that have made him have to restructure a large part of his business. Huawei controls several of the key patents in wireless communications, an industry where cross-licensing is a common practice, even among competing companies. Huawei is one of the pioneers of 5G, and has patent agreements with several major companies in sectors such as telecommunications and the automotive industry. Among them, with Samsung Electronics and the Mercedes-Benz Group.
License royalties are typically charged based on the number of devices a company sells. And the royalty profits Huawei has earned will be used to fund the company’s research and development efforts, Fan has said.
This royalty income will be used to finance the company’s research and development projects, which spends large sums on R&D. Just last year, it invested all of the sales revenue from one of its quarters in R&D. In total, 22,500 million.
Of course, the company has no intention of using its patent package to counteract the United States sanctions, and they have made it known to the rest of the industry. And Fan has commented that «Huawei seeks a balanced stance in collecting royalties. Product sales are also essential to us, so we do not believe it is reasonable to ask for excessive amounts for patent use.«.
