Huawei Continues Mobile Patents Agreement with Nokia Despite US Restrictions

Huawei has secured an extension to its patent licensing deal with Nokia, suggesting that the Chinese company continues to lead in networking technology despite years of US sanctions.

The announcement indicates that there is still strong interest in accessing Huawei's next-generation telecom patents, despite US accusations that the Chinese giant poses a threat to national security. Huawei did not disclose details of the deal, saying that the terms are confidential.

After US tech export restrictions severely impacted Huawei's smartphone business and sales of advanced gear in developed markets, the company is now trying to open up new markets and businesses. In response, it has begun levying royalties from the world's biggest smartphone brands, including Apple Inc. and Samsung Electronics Co., after first announcing plans to broaden its licensing business from 2021.This year, Huawei has signed more than 20 patent license agreements covering smartphones, connected vehicles, networking and the Internet of Things, according to Alan Fan, the company’s global head of IP. These agreements will help Huawei to continue innovating and bringing new products and services to market.

"We have reached deals with around 15 car makers for the use of our advanced wireless technologies," he said in a prepared statement. "This includes well-known names such as Audi, Mercedes Benz, BMW, Porsche, Renault, Suzuki, Lamborghini, Subaru and Bentley."

Intellectual property collaborations are among the few areas where Huawei can still make significant headway in developed markets like Europe.

The UK has decided to remove Chinese company Huawei from its 5G networks by 2027, though there has been a recent delay in certain specific restrictions. A senior European Union official also urged countries like Germany last month to stop using high-risk 5G suppliers, without naming Huawei.

The Trump administration imposed a series of export bans that barred Huawei from accessing critical American technologies, curtailing its ability to produce advanced products ranging from smartphones to servers. The Biden administration has continued this campaign against China's tech giants, targeting Chinese-made semiconductors.

Huawei's net income fell by 40% in the first three quarters of 2022. This was despite the fact that the company had invested heavily in research in order to maintain its lead in 5G networking technology.

Huawei is the largest holder of patents in ultra-fast broadband technology, which is quickly becoming the standard for mobile users around the world. The company is also seeking alternative sources of income by selling artificial intelligence and wireless communications gear to less-traditional customers, such as automakers, coal mines, and industrial parks.