The ongoing clash over patents between Huawei and MediaTek is set to intensify around October 25th, following the end of China’s Golden Week holiday and major product launches, according to a fresh report from DigiTimes.
The Core of the Issue
Since July, both tech titans have been embroiled in disputes over claims of patent violations concerning cellular network technologies, which include 4G, 5G, and LTE. Each company has taken legal action against the other—Huawei has filed a lawsuit in a Chinese court, while MediaTek has pursued its case in the UK High Court. Although specific details regarding the lawsuits and court dates are still not clear, the latest information from DigiTimes hints at a possible start after October 25th.
Licensing Agreement Problems
The heart of this disagreement appears to be a failed licensing deal. Huawei, the Chinese tech powerhouse, possesses a substantial collection of standard-essential patents (SEPs) vital for wireless communication, owning around 20% of the global 5G patents. Presently, Huawei imposes patent fees on terminal device makers, which are the companies that design, put together, and sell complete devices. For smartphones, some of these manufacturers include Oppo, Xiaomi, and Samsung.
Huawei's legal action aims to shift this fee model to focus on component suppliers like MediaTek instead of the device manufacturers. In contrast, MediaTek has found these licensing fees—calculated based on terminal device prices—to be too steep, contributing to the ongoing conflict between them.
Potential Industry Impact
Should Huawei’s plan succeed, it may revolutionize the patent licensing framework within the tech sector. Smartphone producers such as Apple, Samsung, Xiaomi, Oppo, and Vivo could experience decreased licensing expenses, as the financial responsibility would transfer to chip suppliers like MediaTek and Qualcomm. In theory, this adjustment could also allow device makers to reduce the prices of their products.
Clearly, both companies are gearing up for what could be a protracted and intricate legal battle. While the outcome remains uncertain, we’ll keep you informed as the situation unfolds.
