On Thursday, Huawei Technologies Co. has filed a lawsuit against U.S. telecommunications operator Verizon. Huawei took the step after the company failed to agree on licensing terms for the use of its intellectual property. The Chinese giant also sought compensation for what it claimed were infringements of its intellectual property.

According to Huwaei, it reached out to Verizon a year ago, notifying the U.S. carrier of its breach of multiple Huawei patents. Still, they were unable to agree on license terms. 

“Verizon’s products and services have benefited from patented technology that Huawei developed over many years of research and development,” said Huawei’s chief legal officer Song Liuping in a statement.

“For years now we have successfully negotiated patent license agreements with many companies,” Song said.

“Unfortunately, when no agreement can be reached, we have no choice but to seek a legal remedy,” he added.

American companies like Verizon use patented technology from Huawei instead of its small presence in the United States. The reason is Huawei holds over 87,000 patents globally, among which 11,000 belongs to the U.S. It is also one of the leading developers of 5G or the fifth-generation wireless networking tech.

Huawei joined Apple, IBM, and Amazon as one of the top 10 patent receivers in the U.S. revealed the U.S. Patent and Trademark Office. Huwaei earlier told Verizon that the U.S. carrier should pay licensing fees of more than US$1 billion for more than 230 of the Chinese telecoms equipment maker’s patents.

In the recently filed lawsuit, Huawei alleged that its patented technology is being used in a range of Verizon’s technologies, including infrastructure that facilitates communications through Verizon’s networks.

The U.S. has already created pressure on the Chinese firm by accusing it of being a national security threat, claiming its networking gear could be used by Beijing to spy on Americans. However, all the allegations were dismissed by Huawei, which has used legal means to try to fight back against U.S. pressure.

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