Huawei urges Verizon to pay fees on over 200 patents

Huawei Technologies is pressuring Verizon Communications to pay licensing fees on over 200 patents related to network equipment and wireline infrastructure, among other products, according to an industry source.

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The request, which came in February before President Trump signed an executive order to bar U.S. firms from working with the Chinese telecommunications giant, is the latest escalation of tensions between the two nations.

A Huawei spokesperson did not immediately respond to request for comment. A Verizon spokesman declined to comment on the discussions, citing the potential for legal proceedings.

"Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and international concerns," he said in an emailed statement.

Verizon shares were up in Wall Street trading on Wednesday on the news.

TickerSecurityLastChangeChange %
VZVERIZON COMMUNICATIONS INC.59.34-0.07-0.12%

Verizon and Huawei officials met in New York earlier this month to discuss the issues, the source said. Unlike AT&T, which uses Huawei equipment in Mexico, Verizon does not use any of the firm's products.

The feud is likely an attempt by Huawei to try to slow the deployment of fifth-generation wireless technology in the U.S. It was first reported by the Wall Street Journal.

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Earlier in the day, Huawei said it would delay the launch of a new laptop due to the ban, the first product launch to be impacted by the executive order.

“We cannot supply the PC,” Richard Yu, who heads Huawei's consumer division, told CNBC.