Huawei to sign a cross-licensing agreement with its Chinese rival

Huawei is briefly the world's largest phone manufacturer, surpassing both Samsung and Apple in terms of shipments, prior to the Trump administration's sanctions making the company non-player in the market.  After the embargo issues, the company went through some serious hard times but still somehow managed to survive. In this context, the company has now started to make different moves to support its growth.

Huawei to sign a cross-licensing agreement with its Chinese rival

Huawei announced this week that it has recently entered into a patent cross-licensing agreement with its largest domestic rival, indicating how much it has fallen since then. The coveted 5G patents of Huawei are now owned by Oppo, OnePlus' parent company and subsidiary of one of the largest electronics manufacturers in China.

The companies did not say what the deal would cost, but we know something about it from information Huawei has shared in the past. Last year, the company said it would charge phone manufacturers a "reasonable" $2.50 per device to license its technologies. This was part of its announcement that it planned to monetize its patent portfolio more aggressively. In addition, Huawei stated that the move would result in an additional revenue of $1.2 billion to $1.3 billion between 2019 and 2021. That's a lot of money at stake when you consider that Oppo and Vivo, both owned by BBK Electronics in China, shipped more than 51 million smartphones during the previous quarter.