"We are delighted to reach a new agreement with Sharp through amicable discussions," said Alan Fan, Head of Huawei's Intellectual Property Department.
“This license represents mutual recognition of intellectual property of two standard contributors, which promotes standardization collaboration. We’ve enjoyed working together with Japanese and global peers in developing standards, and will continue to do so. Advanced technical standards enhance user experience, promote competition and reduce device and service cost,” Fan added.
Huawei said they believe licensing of technologies is a delicate issue.
If license fees are too low, there is no reasonable return on investment from innovation, but if fees are too high, then innovation could become a privilege for only the wealthiest of companies.
Huawei believe that patent licensing between companies promotes widespread use of standard technologies. Obtaining IP licenses from other companies can ensure widespread adoption of common technologies.
Without IP licenses, duplication of efforts would lead to increased costs, low efficiency and a less open industry, Huawei said.
Patent license can be distributed in two main ways, bi-lateral negotiations and communal “patent pools” whereby companies join as both license holders and licenses.
Huawei participates in many patent pools, including Sisvel’s Wi-Fi 6 program, IOT program, Avanci 4G vehicle program, 5G vehicle program and Access Advance’s HEVC ADVANCE program.
Patent pools increase transparency of patent licensing and reduce licensing disputes, Huawei stated.
Implementers can obtain a license under all patents in the pool at one time, which increases licensing efficiency and reduces licensing costs.
If one license area has a lot of licensors and licensees a patent pool is an efficient solution. Huawei is actively communicating with the patent pool. If patent pool is well operated, it will reduce the bilateral negotiation and improve licensing efficiency.
Companies are also able to conduct bi-lateral negotiations. To enhance licensing transparency, promote the wide use of standard technologies, and share Huawei's standard technologies more efficient, Huawei has announced Cellular, Wi-Fi 6, and IoT programs on its website.
“We are pleased to have reached this global patent cross-licensing agreement with Huawei under fair, reasonable, and non-discriminatory conditions. This agreement reflects that both parties respect the high value of each intellectual property,” stated by Mototaka Taneya, Executive Managing Officer, Chief Technical Officer, and Head of R&D at Sharp.
