Money & The Economy

Huawei, A Corporate Pariah In America, Sues Verizon As It Clings To The American Market

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Tech giant Huawei is accusing American telecommunications company Verizon of violating several patents as the Chinese company tries to stay relevant inside the U.S., a lawsuit filed in Texas Thursday shows.

Verizon Communications violated 12 patents on digital communications and other technology, Huawei said in a copy of the lawsuit. The lawsuit was filed after negotiations failed to produce a licensing agreement, the company added.

Huawei has long denied allegations that is poses a risk to U.S. security. Though such appeals have fallen on deaf ears in Washington, D.C. President Donald Trump imposed sanctions in May blocking Huawei’s access to U.S. technology components.

The company claims to have collected $1.4 billion in U.S. patent fees over the last five years, so the lawsuit is Huawei’s attempt to retain some value from its connections to the U.S.

Department of Justice officials charged Huawei on January 2019 on several counts of fraud.

The 13-count indictment against Huawei and its chief financial officer, Meng Wanzhou, accused the tech giant of bank fraud, wire fraud and violating U.S. sanctions on Iran. It was also charged with conspiring to obstruct justice related to the DOJ’s investigation. U.S. lawmakers have gotten in on the fight as well.

The Trump administration meanwhile unsuccessfully applied pressure on the United Kingdom to avoid using Huawei to build out its fifth generation network. Britain announced in January  plans to allow the company limited access to the country’s 5G networks.

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