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(Reuters) — China’s Huawei has initiated legal action against Verizon, alleging the U.S. carrier used 12 of its patents without authorization.
The telecommunications equipment maker is seeking compensation for the use of its technology in areas such as computer networking, download security, and video communications, and is also seeking ongoing royalty payments, according to documents filed with the Eastern and Western District courts in Texas.
Verizon has previously declined to comment on its patent dispute with Huawei.
“Verizon’s products and services have benefited from patented technology that Huawei developed over many years of research and development,” Huawei’s chief legal officer said in a statement.
“Huawei is 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 in its products and services.”
Huawei could not provide a figure on the compensation [it seeks] as it does not have a breakdown of the patents’ alleged contribution to Verizon’s services, said a person with direct knowledge of the matter.
In the court documents, Huawei said Verizon has “profited greatly” from its technology, with the U.S. firm’s Wireline segment — which covers voice, data, and video communications products — generating revenue of $29.8 billion in 2018.
Huawei and Verizon have held six face-to-face meetings to discuss the matter since February of last year but were not able to reach an agreement, said the person, who was not authorized to speak publicly on the matter and so declined to be identified.
In June, the Wall Street Journal reported that Huawei was seeking compensation from Verizon for the use of more than 200 of its patents.
The Chinese company decided to take action on 12 patents because it considered evidence for them clearest and the number manageable for the court, the person told Reuters.
Huawei in December also mounted a legal challenge against the U.S. Federal Communications Commission after the body designated it a security threat — which Huawei denies — and barred it from a government subsidy program.
The company is “still confident” about legal proceedings in the United States, the person said.
Huawei has received more than $1.4 billion in patent license fees since 2015 and paid over $6 billion for the use of patented technology in that time, the company said in its statement.
(Reporting by David Kirton, editing by Christopher Cushing.)
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