Businesses

Apple In Advanced Talks To Buy Intel's Smartphone-Modem Chip Business (cnbc.com) 64

According to The Wall Street Journal, Apple is in advanced talks to buy Intel's smartphone-modem chip business (Warning: source paywalled; alternative source), "a move that would jump-start the iPhone maker's push to take control of developing the critical components powering its devices." From the report: A deal, covering a portfolio of patents and staff valued at $1 billion or more, could be reached in the next week, the people said -- assuming the talks don't fall apart. Though the purchase price is a rounding error for companies valued in the hundreds of billions of dollars, the transaction would be important strategically and financially. It would give Apple access to engineering work and talent behind Intel's yearslong push to develop modem chips for the crucial next generation of wireless technology known as 5G, potentially saving years of development work.

For Intel's part, a deal would allow the company to shed a business that had been weighing on its bottom line: The smartphone operation had been losing about $1 billion annually, a person familiar with its performance has said, and has generally failed to live up to expectations. Though it would exit the smartphone business, Intel plans to continue to work on 5G technology for other connected devices.
Earlier this year, it was reported that Apple began discussing plans to acquire parts of Intel's smartphone modem chip business last summer, around the time former Intel Chief Executive Brian Krzanich resigned. "Mr. Krzanich championed the modem business and touted 5G technology as a big future revenue stream," reports The Wall Street Journal. "When Bob Swan was named to that job in January, analysts said the odds of a deal rose because his focus on cleaning up Intel would require addressing the losses in the modem business."
Intel

Intel Launches Blockbuster Auction For Its Mobile Portfolio (iam-media.com) 30

In what looks set to become one of the highest profile patent sales in years, Intel has put its IP relating to cellular wireless connectivity on the auction block. The company is seeking to divest around 8,500 assets from its massive portfolio. From a report: The news comes as the chip giant searches for a buyer for its 5G smartphone modem business having announced in April that it was pulling out of the market. That was after as it had become increasingly clear that the company, which has been the supplier of 4G modem chips to Apple for the last few years, was struggling to release a 5G product even though the rollout of the next generation of mobile technology is well underway. The auction offering is comprised of two parts: the cellular portfolio and a connected device portfolio. The former includes approximately 6,000 patent assets related to 3G, 4G and 5G cellular standards and an additional 1,700 assets that read on wireless implementation technologies. The latter is made up of 500 patents with broad applicability across the semiconductor and electronics industries. Although that represents a large portion of Intel's cellular IP it is understood that it will retain significant wireless assets.
Open Source

How OIN's Linux-Based Patent Non-Aggression Community Drove Open Source Growth (zdnet.com) 25

"Some businesses, such as pharmaceuticals, still spend enormous amounts of time and money on intellectual property (IP) fights," reports ZDNet. But "thanks to the Open Invention Network (OIN), the largest patent non-aggression community in history, Linux and related open-source technologies have become mostly free of these expensive entanglements."

And now they're reporting that the OIN's membership has grown to over 3,000 licensees: OIN's mission is to enable Linux, its related software, and its programmers to develop and monetize without being hogtied by patent fights. In Linux's early years, this was a constant threat. Now, thanks largely to the OIN's efforts to get everyone to agree on the basic open-source principle -- that's it's better and more profitable to share than to cling to proprietary property -- open-source software has taken off in the marketplace... The OIN, which has grown by 50% in the last two years, has turned patent non-aggression into policy for thousands of companies. By agreeing to the OIN license, members gain access to patented inventions worth hundreds of millions of dollars while promoting a favorable environment for Linux and related open source software.

The license works by everyone agreeing to patent non-aggression in core open-source technologies by cross-licensing Linux System patents to one another on a royalty-free basis. OIN-owned patents are similarly licensed royalty-free to any organization that agrees not to assert its patents against the Linux System. While it started out just covering the Linux operating system the Linux System has evolved to address Linux and adjacent Linux-related open-source technologies. It now covers open-source programs covering mobile communications, mobile payments, computing, blockchain, cloud, Internet of Things, and embedded and automotive technologies.

"For innovation and invention, open source and Linux are unmatched in the modern world. The open-source community's success is powered by the fact that shared innovation acts as a force multiplier -- where one plus one equals orders of magnitude more than two," said Keith Bergelt, OIN's CEO. "OIN's remarkable growth has been driven by heightened recognition of the importance of open source and a broad-based recognition of patent non-aggression as a cultural norm in the Linux and greater open source community. Joining OIN is viewed by many as a litmus test of authenticity in the open-source community."

The Linux Foundation's executive director says their group's success "has been directly enabled by the patent risk mitigation platform that the OIN has provided.

"Absent the now 3,000 strong member community of patent non-aggression that Keith Bergelt and his team at OIN have painstakingly built over the last dozen or so years, the level of open-source software innovation and unprecedented adoption rates could simply not have been achieved."
Patents

Amazon Patents 'Surveillance As a Service' Tech For Its Delivery Drones (theverge.com) 47

Amazon's delivery drones may also be used to offer "surveillance as a service." According to The Verge, "Amazon was recently granted a patent that outlines how its UAVs could keep an eye on customers' property between deliveries while supposedly maintaining their privacy." From the report: The patent was originally filed in June 2015 and became public earlier this month. It describes how the company's drones could be hired to look out for open garage doors, broken windows, graffiti, or even a fire, before alerting the owner of the property. The patent was originally filed in June 2015 and became public earlier this month. It describes how the company's drones could be hired to look out for open garage doors, broken windows, graffiti, or even a fire, before alerting the owner of the property.
Government

Senator Rubio Targets Huawei Over Patents (reuters.com) 178

hackingbear writes: While intellectual property violation is a major accusation against China in the on-going US-China trade war, U.S. Senator Marco Rubio filed legislation on Monday that would prevent Huawei from seeking damages in U.S. patent courts, after the Chinese firm demanded that Verizon Communications pay $1 billion to license the rights to patented technology. Under the amendment -- seen by Reuters -- companies on certain U.S. government watch lists, which would include Huawei, would not be allowed to seek relief under U.S. law with respect to U.S. patents, including bringing legal action over patent infringement.
Privacy

Amazon's Ring May Be Branching Out Beyond Outdoor Cameras (qz.com) 24

The Amazon panopticon may soon be getting a few new eyes. From a report: In February 2018, Amazon paid $1 billion to acquire Ring, the connected-camera doorbell company whose founder was once rejected on Shark Tank. Since then, Ring has been integrated with other Amazon services, allowing live feeds from its devices on Amazon Echo Shows and leading to new products such smart floodlights. Ring has also helped Amazon to flesh out its rather creepy Key service, where users with Ring doorbells (and other connected products) can choose to let people and deliveries into their homes remotely. Ring has also been building up its Neighbors app, which allows Ring users to share their camera footage with people who live nearby, allowing them to see if they believe any crimes have been committed nearby.

Ring has also forged partnerships with more than 50 police departments, leading to communities that are effectively surveilled by the police, through the camera company owned by the US's largest e-commerce company. Amazon is apparently not stopping there with its one-stop viewing. The company recently received trademarks, uncovered by Quartz, for multiple products that bear the Ring name, including Ring Beams, Ring Halo, and Ring Net. All three trademarks are listed as covering a range of uses, many matching what Ring products currently offer, including internet-connected security cameras, alarm systems, lighting, and cloud video storage.

Open Source

Graphene As an Open-Source Material (techcrunch.com) 26

An anonymous reader quotes a report from TechCrunch: The 2D wonder-material graphene could greatly benefit from the widespread experimentation of open-source use. In its current state, graphene is primarily researched by scientists in universities and labs, but by making graphene a material that is open to be improved upon by anyone, we might see the fulfillment of the potential that graphene has been hailed for since its discovery. Graphene's capabilities are staggering -- it is essentially 2D, flexible, 200 times stronger than steel, conducts heat 10 times better than copper and conducts electricity 250 times better than silicon. Its abilities are far-reaching and extremely potent, making graphene applications nearly endless. As it stands, graphene research is limited to a select few technology companies -- Samsung, for instance, has the most graphene patents to date. Otherwise, most graphene research is done in university labs. In the same way that open-sourcing has built up software and related technologies, open-sourcing could also viably allow a wider range of individuals and communities to help unlock graphene's unrealized potential.

Graphene is fundamentally different from software in that it is a physical resource. Since the material's discovery, quantity has been a serious issue, preventing the material from seeing widespread use. Natural reserves of graphene are few and far between, and while scientists have discovered ways of producing graphene, the methods have proved unscalable. In addition, graphene would need a way to be experimented with by the average user. For those who don't have the same equipment researchers do, how can they go about tinkering with graphene? In order for graphene to become an open-source material, a solution for these two problems must be found.

Verizon

Huawei Asks Verizon To Pay Over $1 Billion For Over 230 Patents (reuters.com) 184

hackingbear writes: Huawei has told Verizon that the U.S. carrier should pay licensing fees for more than 230 of the Chinese telecoms equipment maker's patents and in aggregate is seeking more than $1 billion, a person briefed on the matter said on Wednesday. Verizon should pay to "solve the patent licensing issue," a Huawei intellectual property licensing executive wrote in February, the Wall Street Journal reported earlier. The patents cover network equipment for more than 20 of the company's vendors including major U.S. tech firms but those vendors would indemnify Verizon, the person said. Some of those firms have been approached directly by Huawei, the person said. The patents in question range from core network equipment, wireline infrastructure to internet-of-things technology, the Journal reported. The licensing fees for the more than 230 patents sought is more than $1 billion, the person said. Huawei has been battling the U.S. government for more than a year. National security experts worry that "back doors" in routers, switches and other Huawei equipment could allow China to spy on U.S. communications. Huawei has denied that it would help China spy.
China

China's ByteDance Plans To Develop Its Own Smartphone (theverge.com) 38

China's ByteDance, owner of the popular TikTok streaming app, is taking a step into hardware to develop its own smartphone [Editor's note: the link may be paywalled; alternative source], Financial Times reported Monday, citing two people familiar with the project. From a report: ByteDance, whose $75bn valuation ranks it as one of the world's biggest start-ups, plans to launch a phone preloaded with its own apps -- which include newsfeeds, short video platforms and games -- in a bid to further spread its reach. The move comes as Chinese tech companies, spooked by the fallout from US bans on exports to Huawei, are ramping up their self-reliance. ByteDance is one of the few tech companies from China to boast a large user base outside its home market, including in India and the US.
Businesses

Huawei Executive Accused of Helping Steal Trade Secrets (theverge.com) 90

CNEX Labs, a Silicon Valley startup backed by Microsoft and Dell, is accusing high-level Huawei executive Eric Xu of participating in a conspiracy to steal its trade secrets (Warning: source paywalled; alternative source), reports The Wall Street Journal. From a report: The Journal quotes a newly released hearing transcript that offers some details in a largely locked-down trial. According to its write-up, CNEX claims that Xu -- one of Huawei's rotating chairmen -- "directed a Huawei engineer to analyze Cnex's technical information." The engineer then allegedly posed as a potential CNEX customer to obtain details about its operations. CNEX also says that Xu was briefed on a plot to surreptitiously gather information from Xiamen University, which had obtained a computer memory board from CNEX. According to the Journal, Huawei lawyers admitted that Xu had been "in the chain of command that had requested" information about CNEX, but they denied that any trade secrets had been stolen.

Huawei originally filed a lawsuit against CNEX co-founder Yiren "Ronnie" Huang in 2017, claiming Huang -- who left Huawei in 2013 -- had poached employees and used its patents to build CNEX's solid-state drive technology. CNEX counter-sued, claiming that Huawei had misappropriated its tech and was trying to gather even more information through the lawsuit.

The Courts

PepsiCo Sues Four Indian Farmers For Using Its Patented Lay's Potatoes (reuters.com) 223

An anonymous reader quotes a report from Reuters: PepsiCo has sued four Indian farmers for cultivating a potato variety that the snack food and drinks maker claims infringes its patent, the company and the growers said on Friday. Pepsi has sued the farmers for cultivating the FC5 potato variety, grown exclusively for its popular Lay's potato chips. The FC5 variety has a lower moisture content required to make snacks such as potato chips. The company is seeking more than $142,840 each for alleged patent infringement.

"We have been growing potatoes for a long time and we didn't face this problem ever, as we've mostly been using the seeds saved from one harvest to plant the next year's crop," said Bipin Patel, one of the four farmers sued by Pepsi. Patel did not say how he came by the PepsiCo variety. PepsiCo, which set up its first potato chips plant in India in 1989, supplies the FC5 potato variety to a group of farmers who in turn sell their produce to the company at a fixed price. The company said the four farmers could join the group of growers who exclusively grow the FC5 variety for its Lay's potato chips.
"PepsiCo India has proposed to amicably settle with the people who were unlawfully using the seeds of its registered variety. PepsiCo has also proposed that they may become part of its collaborative potato farming program," the company spokesman said in a statement.

While the spokesman said the farmers can sign an agreement to cultivate other available varieties if they do not wish to grow the FC5 potato variety for PepsiCo, it raises the question of whether farmers should have the right to grow and sell trademarked crops. More generally, it brings up the controversial question: should plants be patented?

The original ending of the "Little Shop of Horrors" movie musical has a scene with an agent haggling over the rights to the giant plant. He shouts "We don't have to deal with you. A god-damn vegetable is public domain! You ask our lawyers!"
Businesses

Apple Considered Purchasing Intel's Smartphone Modem Chip Business (macrumors.com) 21

Apple reportedly considered acquiring parts of Intel's smartphone modem chip business as they looked into ways to speed up their own efforts to build modem chips for smartphones. MacRumors reports: Intel and Apple entered into discussions last summer and the talks continued for months, but ended right around the time Apple settled its legal dispute and reached a supply agreement with Qualcomm. Sources at Intel that spoke to The Wall Street Journal said that Intel is exploring "strategic alternatives" for its smartphone modem chip business, and is still interested in a sale to Apple or another company.

In an interview yesterday, Intel CEO Bob Swan confirmed that Intel is considering alternatives "based on what's best" for Intel's IP and employees: "Selling the modem business would allow Intel to unload a costly operation that was losing about $1 billion annually, according to another person familiar with its performance. Any sale would likely include staff, a portfolio of patents and modem designs related to multiple generations of wireless technology, said Patrick Moorhead, principal at Moor Insights & Strategy, a technology firm."

Transportation

Toyota Establishes Research Institute In China To Study Hydrogen, Green Tech (reuters.com) 82

Japan announced on Sunday it was setting up a research institute in Beijing in partnership with Tsinghua University to study car technology using hydrogen power and other green technologies that could ease environmental problems in China. Reuters reports: The initiative, outlined by Toyota's President and Chief Executive Akio Toyoda in a speech at Tsinghua University, is part of the Japanese carmaker's efforts to share more technology with China as it seeks to expand its business in the country by beefing up manufacturing capacity and distribution channels, a source close to Toyota said. The Tsinghua-Toyota Joint Research Institute will conduct research into cars and new technology to solve environmental problems in China, including reducing traffic accidents, Toyota said in a statement.

The institute will "cooperate in research not only related to cars for Chinese consumers, but also in research related to active utilization of hydrogen energy that can help solve China's energy problems," the company said. The move dovetails with Toyota's announcement this month that it would offer carmakers and suppliers around the world free access to nearly 24,000 patents for electric vehicle technologies.

The Courts

Apple, Qualcomm Settle Royalty Dispute (cnbc.com) 59

Apple and Qualcomm have settled their royalty dispute, the companies said on Tuesday. From a report: The settlement includes a payment from Apple to Qualcomm as well as a chipset supply agreement, suggesting that future iPhone may use Qualcomm chips. The two companies started proceedings in a trial in federal court in San Diego on Monday, which was expected to last until May. Both sides were asking for billions in damages. In November, Qualcomm CEO Steve Mollenkopf said that he believed that the two companies were on the "doorstep" to settling. Apple CEO Tim Cook contradicted him shortly after, saying that Apple hasn't been in settlement discussions since the third calendar quarter of 2018.

The complicated legal battle centered around modem chips and had been raging in courts around the world since 2016. For years, Apple bought modem chips from Qualcomm, but chafed under Qualcomm's prices and requirement that any company using its chips would also pay licensing fees for its patents. New iPhone models released in 2018 used Intel modem chips, and Apple said in a previous FTC trial that Qualcomm.
UPDATE: Intel announced this afternoon that it plans to exit the 5G smartphone modem business, leaving Qualcomm as the only supplier for Apple's iPhones.
Transportation

Toyota Will Share 23,740 Hybrid Vehicle Patents For Free (reuters.com) 163

An anonymous reader quotes Reuters: Japan's Toyota Motor Corp will offer free access to its hybrid-vehicle patents through 2030, it said on Wednesday, seeking to expand use of the lower-emission technology even as the global industry shifts toward fully electric cars. The pledge by one of the world's biggest automakers to share its closely guarded patents, the second time it has opened up a technology, is aimed at driving industry uptake of hybrids and fending off the challenge of all-battery electric vehicles (EVs).

Toyota said it would grant licenses on nearly 24,000 patents on technologies used in its Prius, the world's first mass-produced "green" car, and offer to supply competitors with components including motors, power converters and batteries used in its lower-emissions vehicles... Toyota's move to unlock its patents underlines its belief that hybrids are an effective alternative to all-battery EVs, given a fuel efficiency roughly double that of gasoline cars, lower cost and that they do not need charging infrastructure. Toyota vehicles account for more than 80 percent of the global hybrid vehicle market. "Toyota has realized that they made a mistake by protecting their hybrid technology for years. This prevented diffusion" said Janet Lewis, head of Asia transportation research at Macquarie Securities.

"Toyota on its own can't get key technology accepted, but if other companies use it, that offers the best chance of expansion," she added.

The article notes statistics from LMC Automotive that hybrid vehicles "account for around 3 percent of all vehicles sold globally, eclipsing the roughly 1.5 percent share of all-battery EVs."

Shigeki Terashi, Executive Vice President of Toyota, said, "we believe that now is the time for cooperation."
Patents

Amazon Is Working On Hot Air Balloon Drone That Approaches Homes Silently (slashgear.com) 94

Amazon has been granted a patent that describes an "unmanned aerial vehicle with inflatable membrane" that would allow it to approach homes silently. The UAV "would have a balloon hidden inside the chasis," reports Slashgear. "That could be inflated using compressed gas, via a tank or chamber also carried on the drone. When the UAV roamed into an area where noise levels needed to be cut -- such as the delivery location, Amazon suggests -- the balloon could be inflated." From the report: In the process it would mean that the traditional drone propellers would have less work to do, since the UAV's buoyancy would be taken care of by the balloon. All the motors would be required for is general positioning. Amazon doesn't envisage flying the drone like a miniature zeppelin, however. Instead, the balloon system would be used to raise and lower the UAV to and from the delivery location. In that way it could help reduce the noise -- and energy -- involved in achieving a cruising altitude, whereupon the balloon would be deflated and gathered back into its dock.

The drone would proceed to the delivery destination, and then the balloon would be reinflated. That could be used to then gently lower the aircraft to the ground, to leave behind its package. Of course, having an inflating balloon near a system of fast-spinning propellers seems like a recipe for disaster, and so part of Amazon's patent outlines the retracting mechanism by which the two elements would be kept apart. The whole thing would be handled by an onboard autopilot, with the balloon reeled back into the storage area. The drone could either return the gas used for inflation to the compression chamber, or allow it to escape. Indeed, another possibility that Amazon suggests is a completely detachable balloon. That, the patent describes, might then float away, or biodegrade, rather than being reused.

Bitcoin

Bank of America Tech Chief Is Skeptical of Blockchain Even Though The Company Has the Most Patents For It (cnbc.com) 82

Bank of America tech and operations chief Cathy Bessant said she is bearish on blockchain, the technology underpinning cryptocurrencies. "I will be curious to see what the actual volume of usage is on the JPM Coin in a year," she said. Slashdot reader technocrattobe shares a report from CNBC: "What I am is open-minded," Bessant said recently in an interview at the bank's New York tower. "In my private scoreboard, in the closet, I am bearish." Bessant is wading into the debate about the blockchain, whose proponents have claimed will be as significant as the internet. A blockchain is an encrypted database that runs on multiple computers, potentially cutting out the need for centralized authorities like banks or governments to settle transactions between parties.

The technology got a boost from rival J.P. Morgan Chase, which revealed last month that it created the first cryptocurrency backed by a major U.S. bank to facilitate blockchain-related payments. But Bessant, who oversees 95,000 technology workers and was named the most powerful woman in banking last year, is a pragmatist. She started out at Bank of America in 1982 as a commercial banker, eventually rising to a series of top roles, including head of corporate banking and chief marketing officer. She has run the bank's global technology and operations division since 2010. Most of what she sees doesn't make sense for finance or significantly improve upon existing methods. She said it's a technology in search of a use case, rather than something designed specifically to solve existing problems.
"I haven't seen one [use case] that even scales beyond an individual or a small set of transactions," Bessant said. "All of the big tech companies will come and say 'blockchain, blockchain, blockchain.' I say, 'Show me the use case. You bring me the use case and I'll try it.'" She added: "I want it to work. Spiritually, I want it to make us better, faster, cheaper, more transparent, more, you know, all of those things."

The report notes that Bank of America "has applied for or received 82 blockchain-related patents, more than any other financial firm, including payment companies Mastercard and PayPal."
Iphone

Judge Recommends Import Ban On iPhones After Latest Apple Vs. Qualcomm Verdict (theverge.com) 67

An anonymous reader quotes a report from The Verge: The latest chapter in the ongoing and messy Apple versus Qualcomm legal battle might mean a U.S. import ban on some iPhone models. A U.S. trade judge has found Apple guilty of infringing on two Qualcomm patents related to power management and data download speeds. As a result, the judge -- International Trade Commission Judge MaryJoan McNamara -- says some iPhone models containing competing Intel modems might be blocked from shipping from China, where they're manufactured, to the U.S. The judgment is still pending review by the ITC. Qualcomm is expecting another ruling in a second case it brought to the ITC later today that is not expected to include an import ban on iPhones. Regardless, this ruling is another blow to Apple, which, earlier this month, was found to have infringed on three separate Qualcomm patents in one of many other legal skirmishes playing out between the two companies. Next month the two companies will square off in court to discuss Qualcomm's alleged anti-competitive licensing strategies and the patent royalties it claims Apple owes for disputing the terms of their long-standing relationship.
Businesses

Grandson of Legendary John Deere Inventor Calls Out Company On Right To Repair (securityledger.com) 67

chicksdaddy writes: The grandson of Theo Brown, a legendary engineer and inventor for John Deere who patented, among other things, the manure spreader is calling out the company his grandfather served for decades for its opposition to right to repair legislation being considered in Illinois. In an opinion piece published by The Security Ledger entitled "My Grandfather's John Deere would support Our Right to Repair," Willie Cade notes that his grandfather, Theophilus Brown is credited with 158 patents, some 70% of them for Deere & Co., including the manure spreader in 1915. His grandfather used to travel the country to meet with Deere customers and see his creations at work in the field. His hope, Cade said, was to help the company's customers be more efficient and improve their lives with his inventions.

In contrast, Cade said the John Deere of the 21st Century engages in a very different kind of business model: imposing needless costs on their customers. An example of this kind of rent seeking is using software locks and other barriers to repair -- such as refusing to sell replacement parts -- in order to force customers to use authorized John Deere technicians to do repairs at considerably higher cost and hassle. "It undermines what my grandfather was all about," he writes. Cade, who founded the Electronics Reuse Conference, is supporting right to repair legislation that is being considered in Illinois and opposed by John Deere and the industry groups it backs. "Farmers who can't repair farm equipment and a wide spectrum of Americans who can't repair their smartphones are pushing back in states across the country."

Wireless Networking

Trump Blockade of Huawei Fizzles In European 5G Rollout (bloomberg.com) 280

An anonymous reader quotes a report from Bloomberg: Last summer, the Trump administration started a campaign to convince its European allies to bar China's Huawei from their telecom networks. Bolstered by the success of similar efforts in Australia and New Zealand, the White House sent envoys to European capitals with warnings that Huawei's gear would open a backdoor for Chinese spies. The U.S. even threatened to cut off intelligence sharing if Europe ignored its advice. So far, not a single European country has banned Huawei. Europe, caught in the middle of the U.S.-China trade war, has sought to balance concerns about growing Chinese influence with a desire to increase business with the region's second-biggest trading partner. With no ban in the works, Huawei is in the running for contracts to build 5G phone networks, the ultra-fast wireless technology Europe's leaders hope will fuel the growth of a data-based economy.

The U.K.'s spy chief has indicated that a ban on Huawei is unlikely, citing a lack of viable alternatives to upgrade British telecom networks. Italy's government has dismissed the U.S. warnings as it seeks to boost trade with China. In Germany, authorities have proposed tighter security rules for data networks rather than outlawing Huawei. France is doing the same after initially flirting with the idea of restrictions on Huawei. Governments listened to phone companies such as Vodafone Group Plc, Deutsche Telekom AG, and Orange SA, who warned that sidelining Huawei would delay the implementation of 5G by years and add billions of euros in cost. While carriers can also buy equipment from the likes of Ericsson AB, Nokia Oyj, and Samsung Electronics Co., industry consultants say Huawei's quality is high, and the company last year filed 5,405 global patents, more than double the filings by Ericsson and Nokia combined. And some European lawmakers have been wary of Cisco Systems Inc., Huawei's American rival, since Edward Snowden leaked documents revealing the National Security Agency's use of U.S.-made telecom equipment for spying.

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