Dominance Of Huawei In 5G Technologies And It’s Implications On Global Stage

INTRODUCTION:
In the latest development related to Huawei, It has been found that the company is the holder of the largest 5G Patent portfolio. 5G is the next big thing in the telecom sector and currently, it is in the development process across the globe before it emerges into the relevant market. US and China, Two major tech pro countries have been flexing their muscles to grow there primacy over this new 5G technology. Chinese giant Huawei has been facing issues related to its prospect of expanding in the 5G spectrum category, mainly because of sanctions imposed against them by the US. It is important to observe that the presence of Huawei in 5G technology cannot be ignored considering the fact that the company is the biggest contributor to the development of the same. The company is the No 1 holder of standard-essential patents, currently around 1500 leading against Nokia. [1]

BUZZ AROUND HUWAEI: The Company has been the centre bone of contention in between US-China trade war which has been continuously growing for quite some time now. Both countries have levelled increased tariffs against goods belonging to the opposite of each other. Huawei has also been barred from seeking any sort of relief from US patent courts by the US Senate’s proposal. The company had earlier told Verizon, a US-based company that it must pay licensing fees for more than 230 of the Chinese telecom’s equipment makers patent and the amount sought is over $1 billion. There has been a long-standing patent issue between both the entities. The dominance of Huawei is such that any company using 5G in its current form is likely to use the technology owned in terms of the patent by Huawei, even if they aren’t using Huawei provided hardware and as such, some form of payment will probably be due on part of such companies. This authorizes the company to make big monetary benefits out of the licensing of patents related to 5G technology. However, US sanctions are likely to have an impact on Huawei’s right to sue patent infringers in their territory. The company is set to lose around $30 billion in revenue over the next 2 years. US government officials have made an acquisition that Huawei has been making Patent trolls through state laws of China.

CONCEPT OF PATENT TROLL: It is considered as a derogatory term, which serves the purpose of making money out of patent infringement claims via court proceedings. Although such practice is not considered illegal, a patent troll has no intention of ever developing a product or service by utilizing a patent. The end result is bad faith infringement threats and licensing demands that cost companies significant money to litigate or settle without any addition to the public good.  It includes practices such as:-

  • Enforcing a patent without any intent of manufacturing a product or providing a service based on that patent, or without using it to conduct research, or otherwise utilizing it for the greater good.
  • Pursuing patent infringement claims that are baseless, may stifle manufacturing at a competitor, and may be easier and cheaper to settle than to litigate.
  • Buying a patent (usually from a bankrupt company at auction) with the intent of suing a competing company under the claim that it has a product that infringes upon the newly purchased patent.
  • Any utilization of a patent to solely enforce patent rights.[1]

CURRENT SCENARIO: The trade war between US and China had taken technology industries by storm as experts have been continuously saying that sanctions leaved by both the countries against each other will be having its effect across the globe. The effect was initiated as a result of US based company Google making announcement that it would stop providing Huawei future android updates & will also limit support for existing devices only. To put some break on effect of the trade war US president Donald Trump made an announcement in recently concluded G-20 global summit held at Japan stating that Huawei would be allowed to carry business with US companies in a normal conditions. President trump also stated that he would be conducting meetings to put off Huawei from list of blacklisted companies.


Author:  AMIT RANJAN , New Law College, Bharati Vidyapeeth Deemed University, Intern at Khurana & Khurana, Advocates and IP Attorneys. In case of any queries please contact/write back to us at ankit@iiprd.com


References:

[1] https://wccftech.com/huawei-has-largest-5g-patent-portfolio-starting-to-flex-ipr-muscle/amp/

[2] https://www.investopedia.com/terms/p/patent-troll.asp

[3] https://wccftech.com/huawei-trade-us-companies-trump/

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