Generally, patent licensing fees are paid on a per-subscriber basis as a percentage of the gross or net profit made on each sale of a product.
Officials from Huawei and Verizon are said to have met in NY last week to discuss the licensing issue and find out whether Verizon is using equipment from other companies that would infringe on Huawei's patents. The patents cover network equipment for more than 20 of the company's vendors, including major USA tech firms, but those vendors would indemnify Verizon, a person familiar with the matter told Reuters.
A Verizon spokesperson told the New York Times that the company had no comment on the matter, but added that "these issues are larger than just Verizon." . President Donald Trump also signed an executive order essentially banning Huawei out of national security concerns Huawei continues to have close ties with the China's communist government.
Huawei's move to chase down Verizon comes as a tumultuous time for the company; last month, the Trump administration placed Huawei on an 'Entity List, ' barring the company from doing business with United States firms without prior government approval.
While Verizon is the first target for Huawei, other US telcos, including T-Mobile, Sprint, CenturyLink and AT&T, could be in the cross hairs as well. The companies declined to comment.
Four days later, Google announced it was cutting off Huawei's access to future updates of Google's Android and Google Play Store.
Reuters reported that Huawei has applied to trademark its "Hongmeng" operating system in at least nine countries and Europe, and that it expects to have it in use by next year.