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Huawei has filed a patent suit in a Beijing court against Taiwan handset chip firm Mediatek.

The suit, alleging infringement of Huawei's IP, appears to be the latest move in a deadlocked negotiation between the two sides over licensing fees charged by Huawei.

the companies had been in talks up to two or three years ago, but discussions had broken down because Mediatek had been unwilling to accept Huawei's charges.

Huawei demanded a fee based on the price of the user terminal, but MediaTek believed that the price was too high.

Huawei doesn’t disclose its licensing income, but is known to be one of the industry’s largest patent holders and in 2022, it accumulated $560 million in royalty fees. By the end of last year, the company had 140,000 global patents, with around 200 licensing and cross-licensing agreements, including a global patent licensing agreement with Ericsson that spans 3G, 4G and 5G network infrastructure and consumer devices, as well as across-license agreement with Amazon that resolved pending litigation between the two. Additional licensing agreements made in 2023 include those with Xiaomi, Sharp and vivo.

In an announcement posted July 19 on the Taiwan Stock Exchange, where shares of MediaTek are traded, the Taiwanese IC designer said that as the accusation has entered a legal stage, it would not comment.

But MediaTek emphasized the legal action taken by Huawei is expected to have little impact on its operations.

Editor：VIcky

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