US Senator Marco Rubio on Monday filed legislation that would prevent Huawei Technologies Co (華為) from seeking damages in US patent courts, after the Chinese firm demanded that Verizon Communications Inc pay US$1 billion to license the rights to patented technology.
Under the amendment — seen by Reuters — companies on certain US government watch lists, which would include Huawei, would not be allowed to seek relief under US law with respect to US patents, including bringing legal action over patent infringement.
On Wednesday last week, a person briefed on the matter said that Huawei had told Verizon that it should pay licensing fees for more than 230 of the Chinese telecoms equipment maker’s patents and in aggregate is seeking more than US$1 billion.
While Huawei declined to comment on the matter, spokesman Joe Kelly said it would hold a briefing later this month on being more aggressive about collecting intellectual property licensing fees.
On Monday, Huawei founder Ren Zhengfei (任正非) said during a panel discussion at the company’s headquarters in Shenzhen, China, that the company would not use its many patents as a “weapon,” but did not rule out seeking royalties for usage.
It appeared to be a new strategy in Huawei’s ongoing battle with the US government.
The company brought a lawsuit in the US in March challenging the constitutionality of a national security law that prevents the US government and its contractors from using Huawei equipment.
National security experts worry that “back doors” in routers, switches and other Huawei equipment could allow China to spy on US communications.
Huawei has denied that it would help China spy.
Rubio, one of the Republican Party’s leading foreign policy voices, filed the measure as an amendment to the annual National Defense Authorization Act, a massive bill setting policy for spending by the US Department of Defense.
While the measure is several steps from becoming law, lawmakers have successfully used the act in past years to crack down on the Chinese firm.
Additional reporting by AP
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