Huawei has sued Taiwanese chip designer and the world’s largest manufacturer of single-chip smartphone platforms MediaTek, accusing it of patent infringement. This step is seen as the Chinese company’s desire to increase the volume of license fees collected.
Huawei, which holds patents on many foundational mobile technologies, filed the lawsuit in a district court in China. MediaTek, the world’s largest developer of mobile processors for smartphones and other mobile devices, confirmed the lawsuit in a filing with the Taiwan Stock Exchange and said it would not have a significant impact on its business. The company declined to comment further on the matter. Details related to the claim have not yet been made public – it is unknown how much Huawei has estimated its damages.
MediaTek’s clients include the world’s largest smartphone and tablet manufacturers, including Samsung, Amazon, Oppo, Sony, Vivo and Xiaomi. The company was a supplier of chips for smartphones and Huawei itself until the United States imposed sanctions on the Chinese manufacturer in 2020. At the end of the first quarter of 2024, MediaTek held the world’s largest market share of smartphone processors – 40%. It was followed by Qualcomm and Apple.
With this lawsuit, Huawei is seeking to increase the amount of licensing fees it charges so it can continue to invest in its research and development, a Nikkei Asia source claims. It’s also a way for the company to show the world its true technological capabilities. Huawei has been forced to file patent lawsuits against multiple companies mainly to increase revenue sources after its smartphone business was hit by US sanctions, another source recalled.
Huawei owns a significant portion of the Standard-Essential Patents (SEPs) that are key to wireless standards—specifically, 20% of 5G-related patents. Huawei’s licensing and cross-licensing partners include European automakers, including Volkswagen, Mercedes Benz, Audi, BMW and Porsche. Cross-licensing agreements have been signed with Oppo and Samsung. Last year, Huawei attempted to collect fees from 30 small and medium-sized Japanese companies that used its patented technology. In 2022, Huawei’s revenue from patent payments reached $560 million, according to information from the Chinese manufacturer itself. Royalties to Huawei are currently paid by about 200 companies, according to Nikkei Asia.