Huawei has been a company that has been around for a really long time. The company has been coming out with a number of electronic devices over the years, but shot into the global lime light about the time they launched the Nexus 6P. With them now being a global smartphone brand, there are bound to be global controversies too. The United Kingdom might ban Huawei over non-payment of patent royalties. Let us take a closer look at the matter:
UK May Ban Huawei Sales Over Patent Royalties
In the UK, Huawei has been fighting a legal battle with US-based Unwired Planet over payment of patent royalties. The matter has finally settled as the decision of the court has come out. This court ruling however, has gone against Huawei and if they decline to pay these patent royalties, UK may ban Huawei sales in their jurisdiction.
While the company is likely to appeal against this move, let us take a look at the cost involved in it. If they do decide to pay, Huawei will have to pay between 0.032 and 0.064 percent of the retail price of each smartphone made by them. This might not look like a high percentage, but when you take into account that Huawei is the third largest phone maker of the world, and the volume of phones that is involved, the number goes into millions.
Interestingly, this decision that comes from the UK court is a global ruling. This means Huawei will need to pay that percentage of profit not only for the phones sold in the UK, but all over the globe. If they decline, the United Kingdom can ban Huawei sales. However, the percentage that needs to be paid varies from region to region. For instance, it is considerably lower in China. Huawei is likely to appeal against this international jurisdiction in the high court of UK.