Huawei Sues Verizon for
February 06, 2020
Huawei filed patent infringement
lawsuits against Verizon in the United States District Courts for the
Eastern and Western Districts of Texas. The company is seeking
compensation for Verizon's use of patented technology that is protected
by 12 of Huawei's US patents.
Verizon said, “Huawei’s lawsuit filed
overnight, in the very early morning, is nothing more than a PR stunt.
This lawsuit is a sneak attack on our company and the entire tech
ecosystem. Huawei’s real target is not Verizon; it is any country or
company that defies it. The action lacks merit, and we look forward to
vigorously defending ourselves."
"Verizon's products and services have benefited from patented technology
that Huawei developed over many years of research and development," said
Dr. Song Liuping, Huawei's Chief Legal Officer.
Huawei re-invests 10% to 15% of its revenue in R&D each year. The
company has spent more than $70 billion US dollars on R&D in the past
decade, which has resulted in more than 80,000 patents worldwide –
including over 10,000 patents in the United States alone.
Before filing the lawsuits in Texas, Huawei negotiated with Verizon for
a significant period of time, during which the company provided a
detailed list of patents and factual evidence of Verizon’s use of Huawei
patents. The two parties were unable to reach an agreement on license
"We invest heavily in R&D because we want to provide our customers with
the best possible telecommunications solutions," continued Dr. Song. "We
share these innovations with the broader industry through license
"For years now we have successfully negotiated patent license agreements
with many companies. Unfortunately, when no agreement can be reached, we
have no choice but to seek a legal remedy.”
is the common practice in the industry. Huawei is simply asking that
Verizon respect Huawei's investment in research and development by
either paying for the use of our patents, or refraining from using them
in its products and services."
Since 2015, Huawei has received more than US$1.4 billion dollars in
patent license fees. To date, it has also paid over US$6 billion dollars
for the legitimate use of patented technologies developed by industry
peers. 80% of these license fees have gone to companies in the United
Innovation and protection of intellectual property are the cornerstone
of Huawei's success. In 2018, Huawei's R&D expenditure reached US$15
billion dollars, close to 15% of the company's annual revenue. Huawei
was ranked fifth on the 2019 EU Industrial R&D Investment Scoreboard,
published by European Commission.