Huawei, Verizon settle patent lawsuit

Tech giants Huawei and Verizon Communications have agreed to settle a pair of lawsuits alleging patent infringement, according to Reuters.

The trial in one of the two lawsuits had just opened last week in Texas.

Huawei sued Verizon in February 2020, alleging it used a dozen of its patents without authorization in sectors such as computer networking, download security and video communications. The lawsuit was seeking unspecified compensation and royalty payments.

At the time, Verizon countered by calling Huawei’s lawsuits “nothing more than a PR stunt” and “a sneak attack on our company and the entire tech ecosystem.” Verizon countersued Huawei, claiming the Chinese company was the one violating Verizon’s patents.

Huawei responded that it was “simply asking that Verizon respect Huawei’s investment in research and development by either paying for the use of our patents, or refraining from using them.”

However, all the back and forth appears to be over. Huawei and Verizon filed joint motions late Sunday to dismiss the various lawsuits and counterclaims.

In a company statement, Huawei said it was “pleased that Verizon and Huawei reached an agreement that ends the companies’ patent litigation. The terms of the agreement are confidential.”

Huawei has been a flashpoint in the U.S.-China relationship for several years. When it comes to US sanctions on Chinese firms, no company has been impacted more than Huawei. The telecoms giant has been labeled as a security threat based on perceived ties with the Chinese government.

In December, the FCC ordered certain telecom companies to remove Huawei equipment from their networks as part of the revocation of the company’s authorization to operate in the US.

To date, Huawei remains on the US economic blacklist with no signs of being taken off despite the new Biden administration taking over in January 2021 and rolling back some of the previous administration’s executive orders on Chinese tech companies.