Senator Marco Rubio files legislation which prevents certain companies from seeking damages in U.S. patent courts.
In a significant development, U.S. Senator Marco Rubio has filed legislation aimed at preventing Huawei Technologies Co Ltd from seeking damages in U.S. patent courts.
The move comes after the Chinese company demanded that Verizon Communications Inc pay $1 billion to license the rights to patented technology.
Under the amendment, companies who are under certain U.S. government watch lists, which includes 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.
On June 12, as per a source briefed on the matter at hand had stated, Huawei had demanded that Verizon pay licensing fees for more than 230 of the Chinese telecoms equipment maker’s patents and is seeking more than $1 billion in total.
The approach marks a new strategy China is taking in the ongoing U.S.-China trade war.
Rubio, one of the Republican party’s leading foreign policy voices, filed the measure as an amendment to the annual National Defense Authorization Act, or NDAA, a massive bill setting policy for spending by the Department of Defense.
Although Rubio’s legislation is several steps away from becoming law, in the past lawmakers have successfully used the NDAA to crack down on Huawei.