The Chinese cell phone supplier has signed a license agreement with a VW supplier. This is an important achievement for Huawei, as the company has recently come under pressure.
Huawei will make money with patent licenses for connected cars from Volkswagen. The Chinese mobile phone supplier and smartphone provider announced a license agreement with a supplier to the Wolfsburg-based group on Wednesday.
The name of the supplier was initially not mentioned. The deal is about patents that are part of the basis of LTE data transmission, it said. It is Huawei’s largest license agreement in the automotive industry to date. Huawei expects that more than 30 million vehicles will be licensed with existing license agreements.
Since cars are increasingly being equipped with cellular modules, patent licenses for the corresponding technologies have become a hot topic for vehicle manufacturers. Network suppliers like Nokia or Huawei hold many patents for basic technical solutions and want to see money. One of the points of contention is whether the licenses from suppliers are sufficient. At the same time, it is common for the patent holder to receive a share of the sales price – there is a dispute whether the right size is the price of the entire car or just the component.
It was only at the beginning of June that Daimler and Nokia settled their long patent dispute with a deal. For Huawei, the agreement with the VW supplier is a particularly important success: The Chinese group has come under heavy pressure from US sanctions. The former global number two has lost massive ground in western smartphone markets because the devices have to get by without Google services. In addition, it is becoming apparent that Huawei cannot have high hopes for a substantial participation in the expansion of the super-fast 5G cellular networks.
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