Huawei accused Verizon of a dozen instances of network tech theft. According to court filings, the Chinese conglomerate alleged the American giant misappropriated 12 of its patents.
Huawei just accused Verizon of 12 tech thefts
Insider sources claim the intellectual property in question isn't linked with Verizon's 5G project. In fact, it's supposedly part of Verizon's existing network offerings. In other words, a hypothetical injunction could be devastating to Verizon and cripple its wireless portfolio.
Such a turn of events could still be unlikely as Huawei has seemingly little chance of winning its lawsuit against Verizon in Texas, the state housing its American HQ. The network tech theft allegations stem from the two companies' latest IP license negotiations which stalled in mid-2019.
Industry insiders with knowledge of the matter previously estimated Huawei could be pursuing north of $1 billion in technology licensing fees.
The talks originally encompassed some 200 patents, but Huawei reportedly believes it can easily prove misappropriation of the dozen in question.
Regardless, the Chinese telecom juggernaut has yet to demand a specific sum from Verizon. Its first step is to judicially force the largest wireless carrier in the U.S. to yield data which would then be used for calculating the exact amount of licensing fees it owes.
Ultimately, this Huawei-Verizon tech theft dispute may take years to resolve.
Another year, another series of tech theft accusations
Huawei's lawsuit is just the latest episode in the company's long stateside issues history. The Shenzen-based firm has been accused of tech secret theft on numerous occasions in the last several decades.
More recently, it started hitting back with lawsuits of its own. Some describe those litigation attempts as moves made in bad faith. Huawei, however, remains adamant it's only protecting its business, arguing the United States is unfairly targeting its revenue streams.
Late last month, Huawei narrowly escaped another one of Washington's attempts at curbing its tech business. The Trump administration was looking to target its remaining stateside suppliers but Pentagon ultimately blocked the effort, sources said.
Spying threat allegations aside, the sheer size of Huawei makes it a resilient beast. The firm continues to expand its operations fueled solely by its domestic relevance. It's hence unsurprising Huawei's momentum wasn't stopped by last year's loss of Google Mobile Services.
Be that as it may, industry watchers remain skeptical about Huawei's ability to continue sustainable operations in the long term. Unless its relations with the U.S. improve, the industry giant may soon find itself bleeding money; much like ZTE was several years back.