Huawei Technologies has filed a lawsuit against MediaTek for alleged patent infringement, reports Nikkei. The case was filed in a Chinese court and is believed to be one of Huawei's efforts to increase its revenue by collecting licensing fees and royalties. Although MediaTek confirmed that Huawei had sued it, it did not reveal the nature of the allegations or which patents are involved.
MediaTek is one of the world's largest suppliers of application processors for smartphones and other types of consumer electronics. In fact, the company used to supply system-on-chips (SoCs) for some of Huawei's own handsets. MediaTek's clients include major consumer electronics brands like Amazon, Samsung, Oppo, Sony, Vivo, and Xiaomi. Many of MediaTek's customers are either based in China or manufacture their devices in China, so banning sales of its processors in Tianxia would be devastating for MediaTek's business in general. Details about the lawsuit, including the damages Huawei seeks, have not been made public.
MediaTek confirmed the lawsuit in a filing with the Taiwan Stock Exchange, noting it would not significantly impact the company, but declined further comment.
Nikkei's sources suggest Huawei's lawsuit aims to collect royalties to fund ongoing research and development. Huawei possesses a substantial number of standard-essential patents, particularly in 5G technology, which holds about 20% of global patents. Since 2021, the company has intensified its efforts to collect royalties, forming licensing agreements with various European automakers such as BMW, Mercedes Benz, and VAG (Volkswagen Audi Group).
In 2022, Huawei earned $560 million from patent royalties. Around 200 companies, including Amazon, Samsung, and Oppo, currently pay for the use of its technologies.
Huawei is not new to turning to litigation to collect royalties. The company sued T-Mobile in 2014, Samsung in 2016, and Verizon in 2020 over mobile connectivity patents. More recently, in 2022, Huawei sued Amazon and Netgear over its Wi-Fi 6 and Wi-Fi 5 patents. The company also sued Stellantis the same year to collect royalty fees for using its patents in cars such as Citroen, Fiat, Peugeot, and Opel.
