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No Ban: Despite being essentially banned from the US market, Huawei still plays a major role in the global technology industry. The Chinese conglomerate holds several crucial patents and other intellectual property, which is why US corporations continue to do “business” with the company despite Washington’s restrictions.
HP Inc. recently announced a new patent deal with Huawei, a company that is unable to sell or import products in the US after being banned by the FCC. The agreement is essential for keeping the US company in the technology business, but HP felt compelled to provide an official explanation of exactly what is at stake.
Huawei was first to disclose the patent licensing agreement, but HP is now lamenting the fact that the arrangement has been deeply “mischaracterized.” The deal stems from a settlement in a legal dispute between the two companies, so there is no grand scheme or broader partnership at play here.
The deal will allow HP to access essential patents related to Wi-Fi technology, which Huawei holds significant intellectual property rights to. The Chinese corporation sued HP over these patents, asking its US counterpart to stop selling products based on the disputed IP. HP was either going to properly license the patents or join the legal fight and risk losing the case.
HP chose the former, as it essentially had no other choice but to enter into a licensing agreement with the Chinese corporation. Otherwise, the US manufacturer could have lost its ability to properly serve US customers. Other players in the technology industry are doing exactly the same, as Huawei holds essential Wi-Fi patents required to support wireless connectivity in computers, printers, and other devices.
However, the agreement does not force HP to buy any Huawei products, which are likely illegal in the US following the FCC’s decision. “HP is not incorporating any Huawei components or technology into HP products. The agreement is not a strategic partnership, nor a commercial alliance, nor a supply agreement, nor any other form of collaboration,” the company stated.
HP also said that this is an all-too-common issue that US technology companies eventually have to deal with. Some crucial connectivity technology is owned by Chinese companies, and companies cannot provide lawful, standards-compliant products to US customers without properly licensing the underlying intellectual property.
The new agreement with Huawei is part of a broader licensing effort related to Wi-Fi technology that involves both HP and other US-based corporations. The patent group in question is known as the Sisvel Wi-Fi 6 pool, a program offering a one-stop solution for accessing essential patents related to the 802.11ax (Wi-Fi 6) connectivity standard.
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Christeen Coby