US Sanctions Do Not Frighten Huawei, Now Continue Collaboration with Nokia

JAKARTA - Huawei has reportedly extended a patent license agreement with Nokia. The company doesn't care even though it has been punished by United States (US) sanctions for years.

Since the sanctions were implemented, it has crippled its once-lucrative smartphone business and Huawei has seen its annual revenue slump. Now, he began to struggle to find a new source of income.

Continuing to work closely with its competitors, Nokia keeps Huawei leading the way in network technology. The deal is claimed to give Nokia access to Huawei's next generation of telecommunications patents, despite the US accusing the Chinese giant of threatening national security.

Unfortunately, Huawei did not disclose the details of the deal. The two network equipment makers signed a licensing deal in 2017.

Huawei says this year it has signed more than 20 new patent license deals or extended agreements with companies in industries including smartphones, cars and telecommunications.

"In the auto industry alone, we reached agreements with about 15 automakers for the use of our advanced wireless technology, including well-known names such as Audi, Mercedes Benz, BMW, Porsche, Renault, Suzuki, Lamborghini, Subaru and Bentley," said the head of Huawei global IP, Alan Fan quoted from Bloomberg, Monday, December 26.

To open up new markets and businesses, Huawei started collecting royalties from the world's biggest smartphone brands, including Apple and Samsung Electronics after first announcing plans to expand its licensing business from 2021.

Intellectual property collaboration is one of the few areas Huawei can still achieve significantly in developed markets like Europe.

For information, a series of export bans imposed that started when former US President Donald Trump took office, he barred Huawei from accessing the country's critical technologies and limited its ability to manufacture advanced products from smartphones to servers.

The campaign against the Chinese tech giant has grown exponentially during the administration of US President Joe Biden until recently, who has also taken aim at semiconductors made in China.