Huawei, the Chinese tech giant, has reportedly filed a patent infringement lawsuit against MediaTek, a major chipmaker, in a local court in China. The lawsuit claims that MediaTek’s technologies violate Huawei’s patents related to network communication, including 5G, 4G, and potentially 3G.
MediaTek confirmed the lawsuit in a statement this morning, acknowledging that Huawei has accused them of patent infringement. However, the company downplayed the impact, stating it’s currently undergoing the judicial process and refrained from further comment.
MediaTek is a leading chip manufacturer that supplies components to major smartphone and tablet makers, including Samsung, Amazon, Oppo, Sony, Vivo, and Xiaomi. It was also a key supplier for Huawei’s smartphone division before the stricter US export controls in 2020.
According to sources familiar with the case, the lawsuit against MediaTek is primarily driven by Huawei’s desire to secure licensing fees to support ongoing research and development (R&D) efforts. These lawsuits also helps Huawei to diversify its revenue streams, especially after US sanctions severely impacted its once-dominant smartphone business.
Huawei holds a substantial portfolio of standard-essential patents (SEPs) essential for wireless communication technologies, including about 20% of the world’s 5G-related patents.
Since 2021, following the tightening of US restrictions, Huawei has ramped up its patent licensing efforts. The company has secured licensing and cross-licensing agreements with major European automakers like Volkswagen, Mercedes-Benz, Audi, BMW, and Porsche.
It also signed 5G technology agreements with Oppo and Samsung in 2023. Last year, Huawei sought licensing fees from several Japanese companies, alleging that their technologies infringed on its patents.
As of 2022, Huawei reported $560 million in revenue from patent royalties, with approximately 200 companies holding licensing agreements with the tech giant, according to Nikkei Asia. With this lawsuit against MediaTek, Huawei appears determined to bolster its revenue streams through aggressive patent enforcement and licensing efforts.
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