Huawei, Apple Reach Agreement Over Patent Licensing

Huawei, Apple Reach Agreement Over Patent Licensing


Chinese telecommunications giant Huawei and Apple Inc. have reached an agreement over patent licensing issues. Recent data, released by China's State Intellectual Property Office, revealed that Apple will have to pay its Chinese counterpart hundreds of millions of dollars over patent licensing for 2015.

According to a report from Guangdong Intellectual Property Office, Huawei licensed 769 patents to Apple in 2015. In return, Apple approved 98 patents to Huawei.

However, Huawei was unable to comment on this due to a confidentiality agreement signed by the two companies. Also, Huawei did not reveal the sum of licensing fees.

The two companies reached a series of agreements last year, including patents relating to GSM, UMTS, LTE and other wireless communication technologies.

Huawei has also reached similar patent deals with other IT giants. In January it signed an agreement with Sweden's Ericsson AB to extend a global patent deal that allows the companies to access each other's essential patents and technologies.

Apple Inc., despite having a team of outstanding designers, pays patent fees to its international competitors.

Last year, Huawei invested a staggering $9.2 billion on research and development, while Apple, the world's most profitable tech company, invested 8.5 billion dollars on research and development. The California-based company only allocated 3.5 percent of its sales revenue to R&D, whereas Huawei spent about 15 percent of its last year’s sales revenue.

Huawei, the largest telecommunications equipment manufacturer in the world, has filed 52,550 patent applications in China and 30,613 applications abroad as of the end of 2015.

Statistics, released by World Intellectual Property Organization, shows that Huawei topped the table again in terms of international patent applications in 2015. In Europe, it also jumped to the fourth place according to the annual report released by European Patent Organization.