The philosophy of wireless carriers and smartphone companies, Kroub said, can be “let’s deal with these claims as they arrive, because we don’t know who will knock on our door next.Huawei may be more inclined to monetize its US patents now that the US government has limited its ability to sell products in the country, Kroub said.Kroub said Huawei’s licensing demand could reflect“desperation to come up with ways of generating revenue in the US market, especially considering the traditional ways of offering products and selling things to business is closed to them. (Photo: AP) Huawei is demanding Verizon Communications Inc pay USD 1 billion to license the rights to patented technology, signalling a potential shift in the embattled Chinese company’s strategy for the US market.”.The following explains why the patent dispute is not unusual and how it could be resolved.Legal experts said Huawei is likely prepared to go to court.Has Huawei been an aggressive enforcer of its patents?Huawei has long been known for defending itself against US patent infringement claims, rather than bringing them.While some licensing disputes are resolved without lawsuits, litigation is fairly common. “It happens all the time. Huawei may end up going to a US court and suing Verizon for alleged patent infringement.

While such injunctions are rarely granted in the United States, the threat of one can motivate a defendant to settle with the patent owner.George Koomullil, a patent analyst at Pleasanton, California-based technology company Relecura, said that 10 or 15 years ago Huawei applied for a relatively modest number of patents.Large companies like Verizon will try to identify patents they might be violating, said Gaston Kroub, a patent lawyer in New York. But that could be changing. Huawei and Samsung Electronics Co recently settled a global legal battle on confidential terms. Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and international concerns. But the company has been more aggressive about applying for patents since around 2007, and particularly in recent years, Koomullil said.”However, Young said.

The fee would cover licensing of more than 230 patents. The Wall Street Journal first reported on the letter on Wednesday.”Huawei did not respond to a request for comment. But that can be a challenge because so many patents are granted every year, Kroub said.Last month, the Trump administration banned Huawei from buying vital US technology without special approval and effectively barring its equipment from US telecom networks.“I don’t know how you can make a demand of USD 1 billion and not be prepared for the answer to be no, at least at first, and for the need to litigate,” Kroub said. Nokia, for example, routinely brings in more than USD 1 billion a year from licensing its patents to others.A Huawei executive made the demand in a February letter, a person briefed on the matter told Reuters.In a lawsuit, a patent owner can ask a judge to block sales of infringing products.“Sophisticated companies like Verizon understand that they could be approached by licensors of any stripe at any time,” Kroub said.A defendant in a patent case typically argues that it does not actually infringe the asserted patents, or wholesale rubber seal strip that they were mistakenly issued and should be revoked.”Tom Cotter, a professor of patent law at the University of Minnesota, said it was possible Huawei executives believe Verizon has been infringing their US patents for some time but for business reasons waited until now to seek compensation.”What happens if Verizon does not pay?Huawei may end up going to a US court and suing Verizon for alleged patent infringement.

It is not unusual for these firms to try to make money from their massive patent portfolios. There are millions of US patents in force, and a typical smartphone implicates hundreds of thousands of them.Verizon spokesman Rich Young declined to comment “regarding this specific issue because it’s a potential legal matter.Republican Senator Marco Rubio said on Twitter on Thursday that the demand against Verizon was an “attempt by (Huawei) to retaliate against the US by setting the stage for baseless, but costly, patent claims.”Franklin Turner, a government contracts lawyer at McCarter & English in Washington, said the patent licensing demand may also be a way for Huawei to “retaliate” against the United States. As technology has advanced, it has become harder to avoid violating — or “infringing” — patent rights.Patent owners “may not enforce their patents for a period of time, but they can choose to do to so whenever they want to,” Cotter said.How common is patent licensing?Patent licensing is very common, particularly in complex industries like telecommunications