Chinese telecom giant Huawei has filed a $1 billion lawsuit in federal court against Verizon, accusing the U.S.-based company of intellectual property theft.
The lawsuit demands that Verizon pay royalties for using more than 230 of Huawei’s patents after the two giants were unable to reach a licensing agreement.
Huawei deploys new strategy to restore its reputation
The lawsuit outlines a new approach by the Chinese company after failing to persuade the Trump administration and Congress to take a more lenient attitude towards its U.S. operations.
Last December, the company filed an appeal against the Federal Communications Commission (FCC), saying the agency acted illegally by banning Huawei customers from getting federal subsidies.
The company is also taking legal action against the government over the 2018 National Defense Authorization Act, which bans U.S. agencies and contractors from buying Huawei equipment.
Verizon calls the lawsuit a “PR stunt”
Huawei claims it attempted to negotiate in good faith with Verizon on six different occasions last year to find a resolution. The U.S. telecom company called Huawei’s lawsuit a publicity stunt and a sneak attack on Verizon and the “entire tech ecosystem.”
In the lawsuit, Huawei claims Verizon uses technology that is protected by a dozen of its U.S. patents related to services, such as Verizon’s Smart Family and One Talk plans. Huawei is one of the world’s largest telecom providers, holding more than 10,000 of its 80,000 patents in the United States.