Huawei to require smartphone-makers using patented 5G tech to pay royalties

Huawei Technologies Co. Ltd. will require smartphone manufacturers using its patented 5G tech to pay a "reasonable" percentage royalty rate for every multi-mode 5G smartphone.

The Chinese smartphone-maker will offer a percentage royalty rate of the handset selling price and a per unit royalty cap at $2.50, it said in a news release.

Huawei expects to receive up to about $1.3 billion worth of revenue from patent licensing between 2019 and 2021, according to Jason Ding, the company's intellectual property rights department chief.

This follows an earlier report about the Biden administration placing stricter conditions on the previously approved export licenses of certain Huawei suppliers. In addition, the Federal Communications Commission identified Huawei among five Chinese communications equipment and services companies deemed national security threats.

Huawei said it had more than 100,000 active patents in over 40,000 patent families worldwide by the end of 2020.

Huawei Investment & Holding Co. Ltd. owns Huawei Technologies.