Huawei reveals royalty rates, patent data

Huawei Technologies Co unveiled the royalty rates for its handsets, Wi-Fi, and internet of things patent license programs on Thursday, part of its broader push to share cutting-edge innovations with the world and support the common, sustainable development of industries globally.

The move came as Huawei now holds more than 120,000 active patents, and the company has become one of the largest patent holders in the world after decades of heavy investment into research and development.

To date, Huawei has entered into almost 200 bilateral patent licenses. In addition, over 350 companies have obtained licenses to Huawei’s patents through patent pools. Under these licenses, Huawei’s total past royalty payments are about three times its royalty collections, and its 2022 licensing revenue amounted to $560 million. In comparison, its total revenue hit 642.3 billion yuan ($89.7 billion) in 2022.

Huawei said royalty rate caps for 4G and 5G handsets are $1.5 per unit and $2.5 per unit, respectively. Huawei’s royalty rate for Wi-Fi 6 consumer devices, meanwhile, is $0.5 per unit. For internet of things devices, the rate for IoT-Centric devices is one percent of the net selling price, capped at $0.75, while the rate for IoT-Enhanced devices ranges from $0.3 to $1 per unit.