Huawei's IP Strategy: Innovation, Geopolitics, and Open Access

BEIJING, CHINA – November 12, 2025

Innovation, in its purest form, often thrives on collaboration and the free exchange of ideas. Yet, in today's fiercely competitive global landscape, intellectual property (IP) has become far more than just a legal safeguard; it is a strategic asset, an economic lever, and, increasingly, a geopolitical instrument. This complex reality was vividly on display at Huawei's sixth Innovation and Intellectual Property Forum, held recently in Beijing, where the company not only celebrated its latest breakthroughs but also underscored its intricate role in shaping the future of technology.

The forum, a gathering of global IP and innovation experts, provided a platform for Huawei to articulate its dual commitment: to robust IP protection and to fostering an open, collaborative ecosystem. "Open innovation drives society and technology forward, and it's in our DNA. We are committed to an open approach to innovation," stated Liuping Song, the company's Chief Legal Officer. This declaration, however, comes from a company navigating some of the most challenging geopolitical currents in recent memory, making its IP strategy a fascinating study in resilience and strategic positioning.

The Engine of Innovation: A Patent Powerhouse

Huawei's investment in research and development (R&D) is nothing short of colossal. In 2024, the company poured approximately US$24 billion into R&D, representing a staggering 20.8% of its total revenue. This sustained commitment has positioned Huawei among the top global R&D spenders for eight consecutive years, with over CNY1.249 trillion invested over the past decade. This massive expenditure translates directly into a formidable patent portfolio.

The numbers are compelling: in 2024, the company published 37,000 patents, setting a new internal record. It also submitted over 10,000 technical contributions to standards organizations and published more than 1,000 academic papers. Significantly, Huawei has been the top user of the Patent Cooperation Treaty (PCT) system since 2014, filing 6,600 PCT applications in 2024 alone. Marco Alemán, Assistant Director General of the World Intellectual Property Organization (WIPO), affirmed this leadership, noting Huawei as a "leading global user of WIPO's Global IP Services and a strong driver of innovation."

By the end of 2024, the company held over 150,000 active patents globally, with substantial grants in China, the United States, and Europe. This extensive patent ownership is not merely for defensive purposes; it underpins the licensing agreements that permeate the global technology landscape. Over 2.7 billion 5G devices, 1.2 billion Wi-Fi devices, and 3.2 billion multimedia devices are licensed under the company's patents. Forty-eight Fortune Global 500 companies are direct or indirect licensees, underscoring the pervasive reach of its technological innovations.

The Strategic Calculus of Licensing in a Billion-Dollar Game

While Huawei's patent portfolio generates significant revenue, its financial strategy in the IP domain is nuanced. In 2024, its patent licensing revenue reached approximately US$630 million. However, the company has historically paid nearly three times more in patent royalties to other IP holders than it has received. This suggests a strategic imperative to ensure access to essential technologies, even as it monetizes its own innovations.

This approach is anchored in the principle of FRAND (Fair, Reasonable, and Non-Discriminatory) licensing. The company prides itself on achieving 95% of its 233 patent license agreements through amicable negotiations, viewing judicial enforcement as a last resort. Recent years have seen Huawei sign or renew cross-licensing agreements with major international vendors, including Nokia, Ericsson, Amazon, Samsung, and Sharp. Notable deals in 2025 included agreements with Amazon and Vivo, alongside the settlement of a major standard-essential patent (SEP) dispute with MediaTek and a Wi-Fi 6 SEP dispute with Netgear.

Liuping Song revealed that 4G and 5G devices were the primary drivers of licensing income in 2024, followed by automotive and consumer electronics. The revenue streams were geographically balanced, with roughly one-third each originating from the Asia Pacific, the US, and Europe. This geographic spread highlights the global demand for Huawei's innovations, even in regions where its market access for hardware might be restricted.

Comparing Huawei's licensing revenue to industry peers reveals a complex picture. While its US$630 million is substantial, it trails companies like Ericsson (US$1.27 billion), Nokia (US$2 billion), and Qualcomm (US$5.57 billion). This difference is partly explained by Huawei's role as a net payer of royalties, indicating a strategy focused on broad technological participation and standard-setting, rather than solely maximizing licensing income.

Bridging Divides: Openness and Accessibility

Amidst the strategic maneuvers, Huawei also champions initiatives aimed at democratizing access to innovation. A prime example is the Chaspark Patent site, launched in June 2024. This free platform allows researchers worldwide to search for patent information, a service that can be prohibitively expensive for students, individual researchers, and small organizations. At the forum, the company announced significant updates to Chaspark Patent, including new features like semantic search and AI summary, designed to enhance usability and accessibility.

This commitment to openness extends to its contributions to open-source software and hardware. The source code for OpenHarmony grew by another 10 million lines in 2024, driven by over 8,100 community contributors, while openEuler exceeded 10 million installations. Alan Fan, Vice President and Head of the Intellectual Property Rights Department at Huawei, emphasized that the company shares its technologies through open-source software, open hardware, patent filings, standard contributions, and academic papers.

This dual strategy of protecting its own IP while contributing to open ecosystems can be seen as an effort to foster collaborative innovation while also securing its influence and relevance in global technology standards.

Navigating Geopolitical Currents with IP as a Compass

Huawei's IP strategy cannot be divorced from the geopolitical landscape. Despite being on the US trade blacklist since 2019, which significantly impacts its ability to sell certain hardware, the company continues to aggressively file patents in the US. "Patent applications in the US are not affected by geopolitical reasons," Liuping Song confirmed, noting that approximately one-third of Huawei's patent revenue originates from the US, primarily from phone manufacturers, Wi-Fi, and automotive vendors.

This persistent engagement in the US patent system, alongside its vast global portfolio, provides the company with significant strategic leverage. Its extensive holdings in 5G and other critical technologies position it as an unavoidable player in global technology discussions and potential trade negotiations. The presence of international figures from WIPO and the International Trademark Association at its forum, and WIPO's consistent recognition of Huawei as a leading PCT user, lend a degree of international legitimacy to its IP practices.

Heiwai Tang, Associate Vice-President of the University of Hong Kong, articulated this broader context at the forum: "Innovation is a core driver of modern economic growth, and its sustained operation relies upon a robust, open, and globally-trusted patent system. I'm pleased to see companies like Huawei adhering to international IP norms, which maximizes the value of IP while fostering a healthy business ecosystem."

Huawei's continuous, heavy investment in R&D, even under intense external pressure, signals a deep-seated commitment to technological independence and innovation as a core strategy to navigate geopolitical headwinds. Its emphasis on a "shared success" narrative and adherence to a rules-based international IP system can also be interpreted as efforts to manage perception and demonstrate responsible leadership amidst ongoing scrutiny. In essence, Huawei's IP strategy is a masterclass in leveraging innovation not just for commercial gain, but as a critical tool for strategic positioning and long-term resilience in a highly contested global arena.