Chinese tech giant Huawei has reportedly filed a patent infringement lawsuit against MediaTek, a major chipmaker, in a local court in China. The lawsuit alleges that MediaTek’s technologies infringe Huawei’s patents related to network communications, including 5G, 4G and potentially 3G.
This morning, MediaTek confirmed the lawsuit in a statement, acknowledging that Huawei has accused them of patent infringement. However, the company downplayed the impact, stating that it is currently in litigation, and refrained from commenting further.
MediaTek is a leading chipmaker that supplies components to major smartphone and tablet manufacturers, including Samsung, Amazon, Oppo, Sony, Vivo, and Xiaomi. It was also a key supplier to Huawei’s smartphone division before the tightening of US export controls in 2020.
According to sources familiar with the case, the lawsuit against MediaTek is primarily driven by Huawei’s desire to receive license fees to support its ongoing research and development (R&D) efforts. The lawsuits also help Huawei diversify its revenue streams, especially after U.S. sanctions severely impacted its once-dominant smartphone business.
Huawei holds a significant portfolio of essential essential patents (SEPs) required for wireless communication technologies, including about 20% of the world’s 5G-related patents.
Starting in 2021, following the tightening of restrictions in the United States, Huawei stepped up its patent licensing efforts. The company has entered into license and cross-license agreements with major European automakers such as Volkswagen, Mercedes-Benz, Audi, BMW, and Porsche.
It also signed 5G technology agreements with Oppo and Samsung in 2023. Last year, Huawei demanded license fees from several Japanese companies, claiming that their technologies infringe on its patents.
As of 2022, according to Nikkei Asia, Huawei‘s revenue from patent royalties amounted to $560 million, and about 200 companies have signed license agreements with the tech giant. Having filed a lawsuit against MediaTek, Huawei seems to intend to increase its revenues through aggressive patent protection and licensing.