Huawei is charging about 30 small and medium-sized Japanese companies a license fee for the use of its patented technology, causing panic among many companies in the country, as they may not be able to continue operating if they disagree.
A source in Huawei’s Japanese unit revealed that ” negotiations are underway with about 30 Japanese telecom-related companies.” The telecom maker is also believed to be building its royalty collection in Southeast Asia.
Huawei is collecting fees from manufacturers and other companies that use components known as wireless communication modules. Sources at several Japanese companies said companies ranging from just a few employees to startups with over 100 employees had received requests from Huawei to collect royalties.
The requested payment levels range from a fixed fee of 50 yen (35 cents) or less per unit to 0.1 percent or less of the system price.
“The levels are comparable to international standards,” said Toshifumi Futamata, a visiting researcher at the University of Tokyo.
Huawei holds a high share of so-called standard-essential patents critical to using wireless communication standards such as 4G or Wi-Fi.