{"id":64541,"date":"2020-06-11T08:09:22","date_gmt":"2020-06-11T08:09:22","guid":{"rendered":"https:\/\/www.thefastfashion.com\/?p=64541"},"modified":"2020-06-11T08:09:22","modified_gmt":"2020-06-11T08:09:22","slug":"huaweis-5g-patents-means-u-s-will-pay-despite-trump-ban","status":"publish","type":"post","link":"https:\/\/www.thefastfashion.com\/?p=64541","title":{"rendered":"Huawei\u2019s 5G Patents Means U.S. Will Pay Despite Trump Ban"},"content":{"rendered":"

Huawei Technologies Co. owns the most patents on next-generation 5G technology, ensuring the Chinese company will get paid despite Trump administration efforts to erase it from the supply chain, according to a new study.<\/p>\n

The study by two research firms identified the inventions most closely connected to the 5G standards and found that six companies owned more than 80% — Huawei, Samsung Electronics Co., LG Electronics Inc., Nokia Oyj, Ericsson AB and Qualcomm Inc., the only U.S.-based company in the group.<\/p>\n

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That may be awkward for President Donald Trump, whose administration has launched a global effort to shut out Huawei, accusing the Chinese company of being a security threat. The administration has launched a number of salvos, including a ban on the sale of any silicon made with U.S. know-how, which is hurting the Chinese company\u2019s aspirations to grow in cutting-edge fields.<\/p>\n

\u201cEven if they hire some other company to build the 5G infrastructure, they still have to pay the Chinese company because of the intellectual contribution to develop the technology,\u201d said Deepak Syal, director of GreyB Services Pte., a technology research firm that conducted the study with software firm Amplified AI Inc.<\/p>\n

Identifying how many patents a company holds — and how key they are to the industry standards — will help determine who profits most from the next generation of technology that promises to revolutionize developments such as autonomous cars, robotic surgery, and connected homes.<\/p>\n

The administration\u2019s efforts against Huawei have borne fruit. Taiwan Semiconductor Manufacturing Co., the main chipmaker to Apple Inc. and Huawei, is planning a plant in Arizona to allay national security concerns and shift high-tech manufacturing to America. In the U.K., Prime Minister Boris Johnson is taking steps to exclude Huawei from its fifth-generation mobile networks by lining up potential replacements.<\/p>\n\n

Industry standards are critical to ensure devices work together and communicate with each other, even across national boundaries. Tech companies get together to establish those standards and pledge that any relevant patents will be licensed on \u201cfair, reasonable and non-discriminatory\u201d terms.<\/p>\n

There have been global patent wars for years over how to define those fair terms and who\u2019s entitled to how much money in royalties. They were at the heart of since-settled fights, including Apple\u2019s scorched-earth battle with Qualcomm, and Huawei\u2019s dispute with Samsung. Huawei has also stopped paying Qualcomm what may amount to billions in royalties amid a dispute.<\/p>\n

The GreyB and Amplified study looked at about 6,400 inventions declared \u201cessential\u201d to 5G by their owners that had active patents somewhere in the world as of Dec. 31, 2019. By comparing the wording of the patent to the standard, the team of 25 researchers deemed 1,658 to be patents \u201ccore\u201d to 5G.<\/p>\n

Courts and negotiators will ultimately have to decide, though, if the patents really are essential to the standard, whether they\u2019re valid or not, and how much they are worth.<\/p>\n

Based on the study, all of the companies were found to be padding their patent submissions to ensure they would be able to enforce their rights later, and in an effort to increase the amount they\u2019d be able to collect in royalties.<\/p>\n

\u201cCompanies over-declare pretty equally, so reducing everyone\u2019s share by 75% or so yields the same pecking order,\u201d said Jorge Contreras, a law professor at the University of Utah who\u2019s written about determining what is \u201cessential\u201d to a standard.<\/p>\n

Adv<\/em>.<\/strong><\/p>\r\n\r\n