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U.S.-sanctioned Chinese company Huawei licenses 5G tech to Oppo

Chinese tech giant Huawei said Friday it has reached a 5G tech licensing deal with smartphone maker Oppo. Huawei's sales were hurt by U.S. sanctions and the U.S. considers Huawei a national security threat. File Photo by Wu Hong/EPA-EFE
Chinese tech giant Huawei said Friday it has reached a 5G tech licensing deal with smartphone maker Oppo. Huawei's sales were hurt by U.S. sanctions and the U.S. considers Huawei a national security threat. File Photo by Wu Hong/EPA-EFE

Dec. 9 (UPI) -- Chinese tech company Huawei and rival smartphone maker Oppo Friday announced a global patent cross-licensing agreement covering cellular patents, including 5G.

"After more than 20 years of continuous innovation, Huawei has developed multiple high-value patent portfolios in the global marketplace in domains like 5G, Wi-Fi, and audio/video codecs," said Alan Fan, Head of Huawei's Intellectual Property Department in a statement. "The mutual recognition of intellectual property value between companies is a major step towards fostering a positive cycle of innovation and research in high-value standards: investing, receiving returns from investment, and then reinvesting."

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Huawei, which faces sanctions from the U.S. government over national security concerns, holds more than 100,000 global patents and is one of the top holders of 5G patents, the latest generation of fast mobile internet and phone service.

The company's sales were crippled by U.S. sanctions, according to industry analysts. The United States has expressed concerns that Huawei presents a national security threat.

RELATED Canada bans tech from China's Huawei, ZTE on its 5G networks

In June 2020 the U.S. FCC designated Huawei as a national security threat. Huawei denies it's a threat.

In May, Canada banned Huawei products from the nation's 5G cellular networks, citing security concerns about the Chinese company.

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The U.S. Department of Justice unsealed a 13-count indictment against Huawei in 2019, alleging company affiliates and its chief financial officer violated U.S. sanctions against Iran.

RELATED Huawei tumbles in global sales rankings after U.S. sanctions

Oppo Chief Intellectual Property Officer Adler Feng said both Huawei and Oppo will benefit from the new patent cross-licensing agreement.

"It clearly demonstrates that the two companies recognize and greatly respect the value of each other's intellectual property. It is a win-win deal for both sides," Feng said in a statement. "We will, as always, advocate for the establishment of a sustainable, healthy intellectual property ecosystem, where intellectual property licenses can be resolved through amicable negotiations and every company's patent value are highly respected."

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