Huawei sues MediaTek for patent infringement amid US sanctions ~ My Mobile India

Highlights

• Huawei files patent infringement lawsuit against MediaTek
• MediaTek controls 40% of the global smartphone processor market
• Huawei aims to generate revenue from its 5G patent portfolio
• Legal action follows US sanctions affecting Huawei’s smartphone business

Huawei has legal action taken against MediaTek, the world leader in smartphone processorsinvolving patent infringement.

The lawsuit, filed in a Chinese district court, targets MediaTekwho gives orders approximately 40% of the global smartphone processor market in Q1 2024.

This move is part of Huawei’s strategy to generate revenue from its extensive patent portfolio, which comprises approximately 20% of all global 5G patents.

The company wants to collect royalties to fund research and development and demonstrate its technological prowess.

Huawei fights sanctions

Huawei’s legal action follows the USsanctions that had a severe impact on the company’s smartphone business.

The company has been actively pursuing royalty payments since it was placed on the U.S. Entity List in 2019 and faced additional restrictions in 2020.

In 2022, Huawei reported revenue of $560 million related to patents.

The company has cross-licensing agreements entered into with major technology companies And car manufacturers including Oppo, Samsung, Volkswagen, And Mercedes-Benz.

Sources familiar with the matter indicate that Huawei has filed similar lawsuits against several companies in a bid to diversify its revenue sources.

Currently, about 200 companies pay royalties to Huawei for using the company’s patented technologies.

This legal battle between two major players in the mobile technology sector emphasizes the growing importance of intellectual property in the industry.

It also shows that Huawei is making efforts to maintain its position in the technology world despite significant challenges in its core smartphone business.

As the case unfolds, it could have implications for the broader smartphone industry and the a complex web of patent licensing agreements that form the basis for modern mobile technologies.

Frequently Asked Questions

Why is Huawei suing MediaTek?

Huawei alleges that MediaTek is infringing on its patents, particularly those related to 5G technology.

What does this lawsuit mean for Huawei?

The lawsuit is part of Huawei’s strategy to generate revenue from its extensive patent portfolio and offset the financial impact of US sanctions.

What is MediaTek’s market share in the smartphone processor industry?

MediaTek held around 40% market share of the global smartphone processor market in Q1 2024.

What other companies are involved in similar lawsuits with Huawei?

Huawei has filed similar lawsuits against several companies to diversify its revenue streams. Currently, about 200 companies pay royalties to Huawei.

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