Huawei Technologies Co. will begin charging mobile giants like Apple Inc. a “reasonable” fee for access to its trove of wireless 5G patents, potentially creating a lucrative revenue source by showcasing its global lead in next-generation networking.
The owner of the world’s largest portfolio of 5G patents will negotiate rates and potential cross-licensing with the iPhone maker and Samsung Electronics Co., Chief Legal Officer Song Liuping said. Huawei aims to get paid despite U.S. efforts to block its network gear and shut it out of the supply chain, but the company said it would charge lower fees than rivals like Qualcomm Inc., Ericsson AB and Nokia Oyj.
Huawei should rake in $1.2 billion to $1.3 billion in patent and licensing fees between 2019 and 2021, executives said without specifying how much would stem from 5G. The company is capping per-phone royalties at $2.50, according to Jason Ding, head of Huawei’s intellectual property department.
