Netgear sued Huawei over a Wi-Fi patent dispute.
Netgear filed a lawsuit against Huawei in California, accusing the Chinese telecommunications equipment manufacturer of racketeering and anti-competitive behavior for refusing to license patents for Wi-Fi technologies on reasonable and Non-Discriminatory terms (RAND).
The dispute centers on patents that are essential to the standard (Standard Essential Patents, SEP), which are considered mandatory for the implementation of technical standards. Such patents differ from others in that their infringement is unavoidable when the relevant standard is implemented. According to the requirements of the IEEE organization, companies participating in the standardization process must provide guarantees for licensing their SEP on RAND terms.
Netgear claims that Huawei committed to providing such guarantees to the IEEE, but subsequently began to demand "excessive and discriminatory deductions" for using its technologies included in the Wi-Fi standards. Instead of identifying specific infringed patents, Huawei insists on licensing the entire patent portfolio, taking an all-or-nothing approach.
According to Reuters, Huawei's main revenue in the United States is now generated by licensing patents, bringing the company revenues of $560 million in 2022. This was part of Huawei's strategy to compensate for losses from sanctions imposed by the United States and other countries.
It is worth noting that in November 2023 in Germany, Huawei's lawsuit against Netgear led to an injunction banning the sale of Netgear products. Netgear claims significant damages from Huawei's actions and seeks recognition of the implied license in court, as well as compensation for damages from the Chinese company. Huawei refrained from commenting on the ongoing lawsuit.
Netgear filed a lawsuit against Huawei in California, accusing the Chinese telecommunications equipment manufacturer of racketeering and anti-competitive behavior for refusing to license patents for Wi-Fi technologies on reasonable and Non-Discriminatory terms (RAND).
The dispute centers on patents that are essential to the standard (Standard Essential Patents, SEP), which are considered mandatory for the implementation of technical standards. Such patents differ from others in that their infringement is unavoidable when the relevant standard is implemented. According to the requirements of the IEEE organization, companies participating in the standardization process must provide guarantees for licensing their SEP on RAND terms.
Netgear claims that Huawei committed to providing such guarantees to the IEEE, but subsequently began to demand "excessive and discriminatory deductions" for using its technologies included in the Wi-Fi standards. Instead of identifying specific infringed patents, Huawei insists on licensing the entire patent portfolio, taking an all-or-nothing approach.
According to Reuters, Huawei's main revenue in the United States is now generated by licensing patents, bringing the company revenues of $560 million in 2022. This was part of Huawei's strategy to compensate for losses from sanctions imposed by the United States and other countries.
It is worth noting that in November 2023 in Germany, Huawei's lawsuit against Netgear led to an injunction banning the sale of Netgear products. Netgear claims significant damages from Huawei's actions and seeks recognition of the implied license in court, as well as compensation for damages from the Chinese company. Huawei refrained from commenting on the ongoing lawsuit.
