Huawei Sues MediaTek for Patent Infringement

Huawei Technologies has filed a patent infringement lawsuit against chipmaker MediaTek in a local Chinese court, as reported last Thursday.

MediaTek confirmed the lawsuit the following day, stating that it would not significantly impact its operations but declined to provide further details.

An insider revealed that Huawei and MediaTek began negotiations over patent fees two to three years ago. However, discussions recently collapsed due to pricing disagreements. Huawei proposed licensing fees based on terminal device prices, which MediaTek found excessively high, leading to the lawsuit.

IP analysts believe this lawsuit might suggest a significant shift in Huawei's patent licensing strategy. Traditionally, Huawei has targeted terminal device manufacturers for patent fees. This lawsuit indicates a potential new approach where Huawei may seek fees from component-level suppliers like MediaTek, shifting the licensing tier from the "terminal level" to the "component level."

If Huawei's strategy becomes widespread, it could transform the patent licensing landscape in the tech industry. Smartphone manufacturers like Apple, Samsung, Xiaomi, OPPO, and vivo might experience reduced licensing costs as the financial burden shifts to chip suppliers such as MediaTek and Qualcomm.

This potential change could significantly impact both the supply chain and consumers, potentially lowering smartphone costs and altering industry dynamics.