HP pushes back on Huawei licensing claims, says patent deal was legal settlement, not partnership

“Huawei’s disclosure of a patent licensing arrangement has been mischaracterized, portraying the settlement of a legal dispute as a broader partnership,” HP shared in a statement following Huawei’s announcement.

Huawei released a statement announcing the signing of a multiyear global patent cross-licensing agreement, including license to HP Inc. for certain Huawei WiFi patents. The Chinese tech company stated that the agreement reflects the cooperation in the field of intellectual property licensing as well as the strength of both vendors in their technology.

"This agreement is a strong testament to Huawei's persistent independent innovation in cutting-edge fields in Information and Communications Technology (ICT). Through patent licensing, Huawei shares its innovation with the industry, particularly in the area of standardized technologies, which brings leading technological experiences to consumers worldwide,” Alan Fan, Huawei's Chief Intellectual Property Officer stated.

The WiFi patents that Huawei is reportedly sharing with HP are in the area of standardized Wi-Fi technologies, according to a press release that also stated that Steven Geiszler had represented Huawei in the negotiation. The release stated that Huawei is also obtaining valuable reciprocal patent rights from HP Inc.

However, HP Inc. has also released a statement claiming that “Huawei’s disclosure of a patent licensing arrangement has been mischaracterized, portraying the settlement of a legal dispute as a broader partnership.”

U.S.-based HP clarified that Huawei is not a supplier to HP and that HP is also not a supplier to Huawei.

“HP is not incorporating any Huawei components or technology into HP products. The agreement is not a strategic partnership, nor a commercial alliance, nor a supply agreement, nor any other form of collaboration,” the statement said.

Instead, HP clarified Huawei’s initial announcement by stating that the Chinese tech company actually owned a significant portfolio of Wi-Fi patents.

“They sued HP over use of those patents, seeking remedies including prohibiting sales of affected products. HP was forced to either license or litigate with the risk of limiting our ability to serve our customers. Given that risk, HP had no other choice but to resolve the dispute through a patent license,” HP said.

The American tech vendor also shared that this case is not just unique to HP as the
standard-essential patent licenses covering Wi‑Fi technology is something used broadly across the industry and are routine for companies whose products connect to Wi‑Fi.

“This is an all-too-common issue facing American technology companies. When standard-essential patent owners like Huawei sue companies with standards-compliant products, American companies often have no choice but to enter into licenses in exchange for the ability to continue serving customers,” the statement concluded.

The statement by HP after the initial announcement by Huawei clearly paints two different pictures. Huawei, which remains under strict U.S. trade restrictions, is blacklisted from supplying major telecommunications networks. However, the announcement with HP raised some eyebrows prompting the HP to explain what the agreement actually meant.

According to Gartner data, HP is currently the world’s second-largest PC maker with a 21.3% market share, behind China’s Lenovo.