Huawei will charge Apple and Samsung with 5G patents royalties, which will be less than Qualcomm and others

This month, IPlytics published a report on Leader in the 5G Patent Race. The ranking is examined on the data of 22 enterprises in which the top 10 brands are Huawei, Qualcomm, ZTE, Samsung, Nokia, and so on.

Huawei leads the 5G patent list with 15.39% of applications followed by Qualcomm with 11.24%, ZTE with 9.81%, Samsung Electronics with 9.67%, and Nokia with 9.01% of applications and more. Aside from this, Huawei also secures the first position on the registered patent application list released by Worlds Intellectual Property Organization (WIPO) followed by BOE and Oppo.

Now, according to the latest news coming from Bloomberg, Huawei will start charging reasonable fees AKA royalties for access to its innovation of wireless 5G patents, potentially creating a profitable revenue for the company.

Huawei, the world’s largest 5G patent owner, will be ready to negotiate prices and potential other use cases with iPhone creator and Samsung. However, Huawei suggests offering lower pricing compared to its market competitor Qualcomm, Ericsson, and Nokia.

Huawei should rake in about $1.2 billion to $1.3 billion in patent and licensing fees between 2019 and 2021, executives said without specifying which of those stemmed from 5G. It’s capping per-phone royalties at $2.50, according to Jason Ding, head of Huawei’s intellectual property department.

Compared to Huawei, companies including Qualcomm gets high royalties on tech patent that they supply for clients such as Apple. Apple pays around $7.50 per phone royalties to Qualcomm, which is far more than what Huawei has to offer.

On the matter of collecting patent royalties, Huawei executives stressed American sanctions shouldn’t affect its ability to cross-license with U.S. companies because those patents are publicly available. The company intends to plow patent fees back into research to maintain its position in wireless networking versus Ericsson and Nokia.