US moves to protect Verizon from Huawei patent claim – report

Apparently Huawei thinks Verizon owes it a billion bucks in unpaid patent licence fees, but a US Senator want to block its ability to sue.

The Senator in question is Marco Rubio, who has form with Huawei as you can see from the tweet below. According to Reuters Rubio filed legislation yesterday designed to block Huawei from seeking damages in US patent courts. The move was an apparent reaction to Huawei getting in touch with Verizon to demand the US operator cough up for 230 of its patents that it used without paying for the privilege.

If this legislation goes through it would set an alarming precedent. The US has made three main claims against Huawei: flouting US sanctions, industrial espionage against US companies and assisting the Chinese government in its own espionage efforts. Rubio seems to be saying that some or all of these allegations also disqualify the company from basic legal rights in the US.

It’s not unreasonable to view Huawei’s alleged claim against Verizon as an escalation, but if it’s without merit then what does the US have to fear from letting the legal process run its course? Talking of escalation, if the US starts suspending the rule of law for Chinese companies, what’s to stop China returning the favour? We can only assume US companies with interests in China, especially those with patent claims such as Qualcomm, are watching this story nervously.