Verizon and Huawei averted a legal showdown by settling a patent dispute involving their respective optical technologies less than a week after taking the matter to a US court.
Their confidential settlement ends the court battle along with a separate legal action Huawei filed against Verizon, which was scheduled to be heard by another US court later this year.
Verizon representative Rich Young stated the company was “happy with the settlement”, a sentiment Huawei echoed in its own statement.
Reuters reported Huawei initially sought licensing fees covering more than 230 patents, though its legal actions focused on a small number of those.
Huawei expects its patent licensing business to generate $1.2 billion in the two years to end-2021, stating it earns a maximum of $2.50 for every multi-mode 5G smartphone for which it charges a fee. It staked a claim to more than 100,000 active patents at end-2020.
The vendor’s business in the US took a big hit due to sanctions imposed by the government and ongoing moves to force operators to remove its equipment from their networks.