Samsung has transferred 98 patents it has in the United States to Huawei, adding to the 81 patents it handed over to the Chinese company in 2019. The two companies had signed a cross-licensing agreement in 2019 to end their patent disputes. The patents transferred range from those related to telecommunications, charging, camera, display, and others. Family patents to those in the US that are registered in South Korea have also been transferred.
Samsung 98 patents to Huawei because a cross-licensing agreement
In cross-licensing agreements, sometimes one party pays more licensing fees compared to the other due to their difference in the number and quality of patents. In 2016, Xiaomi and Microsoft signed a similar cross-licensing agreement, with Xiaomi likely paying more as it has fewer patents.
Samsung and Huawei’s patent dispute involved those related to telecommunications, an area in which the Chinese company has more patents. The transfer of patents is likely related to the cross-licensing agreement, which mostly involves 5G patents, and Samsung has fewer of these patents than Huawei.
Since the US sanctions and the split of its Honor smartphone brand, Huawei has been increasing its patent licensing revenues. The three-year period from the last patent transfer is likely related to the renewal of the agreement.
This is not the first time Huawei has entered into a cross-licensing agreement. In fact, the company recently entered into a similar agreement with Chinese firm Oppo. The new agreement covers cellular communications standards, including 5G communications. Both companies have stated that the agreement is a win-win for both parties, as it allows them to leverage each other’s strengths for maximum business impact.
The new agreement advocates for the settling of intellectual property licensing issues through friendly consultations and mutual respect for patent value. Huawei has several patent packages that include 5G, Wi-Fi, audio, and video, and the new agreement is expected to promote innovation and rapidity of research globally. It will also provide more competitive products and services for consumers.
Both companies will hope that the new cross-licensing agreement signals the beginning of a period of rapid growth and development. The agreement will be especially beneficial for Huawei following the US clampdown on its operations. Prior to the clampdown, Huawei was the global leader in research on 5G and 6G, and had secured a number of infrastructure contracts across multiple jurisdictions. The specific details of the agreement are not currently known, but it is expected that both companies will make full use of its provisions. GizmoChina