Huawei Technologies made $560 million in revenue from its patent licensing deals last year, disclosing for the first time its annual income from that part of the business, reports Bloomberg. The Shenzhen-based company has collected slightly more in royalties than it paid out over the past two years because of its falling smartphone sales, according to Alan Fan, head of its intellectual property rights department. Huawei has had to remake itself after Washington’s strict sanctions cut off its access to a wide spectrum of chips and software using American technology.
The firm controls some of the key patents in wireless communications, where cross-licensing of technologies is a common practice among competitors. As one of the 5G pioneers, it’s signed patent agreements with global leaders like smartphone maker Samsung Electronics and auto marque Mercedes-Benz Group AG.
“Huawei seeks a balanced stance in collecting royalties,” Fan said. “Product sales are also essential for us, so we don’t think it’s reasonable to ask excessive amounts for patent fees.”