Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

The new Huawei 5G Mate X2 foldable phone is seen displayed at the Mobile World Congress (MWC) in Shanghai, China on Feb. 23, 2021.

ALY SONG/Reuters

Huawei Technologies announced royalty rates for the use of its 5G phone technology for the first time, in a move its chief legal officer said was an effort to increase transparency at an event on Tuesday.

The company was put on an export blacklist by former U.S. President Donald Trump in 2019 and barred from accessing critical technology of U.S. origin, affecting its ability to design its own chips and source components from outside vendors.

But, Huawei is looking to showcase its own research achievements, with the company expecting to receive around $1.3-billion in revenue from patent licensing between 2019 and 2021, according to its head of IP, Jason Ding.

Story continues below advertisement

For every phone that uses Huawei’s 5G technology, which are capable of working the company will receive up to $2.5 in royalties, Ding said.

Along with rivals Samsung Electronics, Nokia , Ericsson, and chipmaker Qualcomm, Huawei is one of the leaders in 5G patents, although studies about which company is ahead in the race vary.

Huawei achieved positive growth for both 2020 revenue and net profit, the company’s founder and CEO Ren Zhengfei had said in February, adding that the company continued to see significant levels of confidence from its customers.

Yet, the company’s smartphone business remains under intense pressure due to the U.S. ban. Huawei’s consumer business made up 54.4% of the company’s revenues in 2019.

The company is expected to reveal full 2020 figures at the end of the month.

By the end of 2020, Huawei held more than 100,000 active patents in over 40,000 patent families worldwide, the company said. Its R&D investments totalled 131.7 billion yuan ($20.27 billion) in 2019.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies