Samsung to pay license fee for 5G technologies developed by Huawei

After benefiting from “banishing” Huawei from the global smartphone market, it is now Samsung’s turn to pay Huawei for licensing technologies developed by the former 5G communications equipment market leader.

Still targeted by US trade bans, Huawei cannot access technologies and components supplied by US companies, or their intermediaries. In contrast, companies such as Samsung are not prevented from accessing key technologies developed by Huawei under license.

Even removed from the ranks of major 5G equipment manufacturers, Huawei still has the ability to innovate and can exert a strong influence on other industry players by licensing technologies considered essential for manufacturing equipment that includes cellular connectivity, including to 5G networks. This is why no smartphone manufacturer can include 5G connectivity without paying a certain fee for licensing Huawei patents.

Although Huawei has announced without elaborating that it has licensed important 5G technologies to Samsung, we already know from a similar agreement negotiated with rival OPPO that patents related to 5G codecs, Wi-Fi and audio-video are likely included. Also on the “shopping” list could be enhancements for 5G modems used on Samsung’s mobile devices, or the licenses could be related to 5G network equipment. For example, equipment used with Samsung Network’s own telecommunications network.

According to industry sources, more than 20 companies have signed up to license Huawei’s patented technologies. Although, the exact amount is not known, industry sources indicate that Huawei would have made between 2019-2021 up to $1.3 billion in revenue, with the licensing of patented technologies covering at least a small part of the losses incurred by the drastic drop in its own sales of 5G phones and equipment.