Huawei Demands $1 Billion From Verizon Because Of Alleged Patent Violations

Could Huawei be on the verge of becoming a patent troll? That was my first thought when I read this Reuters report which details that the troubled Chinese telcom gear maker wants (insert Dr. Evil voice and place your pinky finger next to your mouth) $1 Billion dollars from American telco Verizon for them using 238 of Huawei’s patents without compensation:

Verizon should pay to “solve the patent licensing issue,” a Huawei intellectual property licensing executive wrote in February, the Wall Street Journal reported earlier. The patents cover network equipment for more than 20 of the company’s vendors including major U.S. tech firms but those vendors would indemnify Verizon, the person said. Some of those firms have been approached directly by Huawei, the person said.

The patents in question range from core network equipment, wireline infrastructure to internet-of-things technology, the Journal reported. The licensing fees for the more than 230 patents sought is more than $1 billion, the person said.

One thing to note here is that while Verizon doesn’t directly purchase equipment from Huawei, it relies on other vendors using the technology that Huawei is going after them over. If this latest move by Huawei spreads from Verizon to other telcos, I think it would be safe to assume that the words “Patent” and “troll” will be added to the things that Huawei is known for.

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