Huawei files to trademark mobile OS around the world after US ban

Huawei — the world’s biggest maker of telecoms network gear — has filed for a Hongmeng trademark in countries such as Cambodia, Canada, South Korea and New Zealand. (Reuters)
Updated 13 June 2019
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Huawei files to trademark mobile OS around the world after US ban

  • The move comes after the Trump administration put Huawei on a blacklist last month that barred it from doing business with US tech companies

LIMA/SHANGHAI: China’s Huawei has applied to trademark its “Hongmeng” operating system (OS) in at least nine countries and Europe, data from a UN body shows, in a sign it may be deploying a back-up plan in key markets as US sanctions threaten its business model.
The move comes after the Trump administration put Huawei on a blacklist last month that barred it from doing business with US tech companies such as Alphabet, whose Android OS is used in Huawei’s phones.
Since then, Huawei — the world’s biggest maker of telecoms network gear — has filed for a Hongmeng trademark in countries such as Cambodia, Canada, South Korea and New Zealand, data from the UN World Intellectual Property Organization (WIPO) shows.
It also filed an application in Peru on May 27, according to the country’s anti-trust agency Indecopi.
Huawei has a back-up OS in case it is cut off from US-made software, Richard Yu, CEO of the firm’s consumer division, told German newspaper Die Welt in an interview earlier this year.
The firm, also the world’s second-largest maker of smartphones, has not yet revealed details about its OS.
Its applications to trademark the OS show Huawei wants to use “Hongmeng” for gadgets ranging from smartphones, portable computers to robots and car televisions.
At home, Huawei applied for a Hongmeng trademark in August last year and received a nod last month, according to a filing on China’s intellectual property administration’s website.
Huawei declined to comment.
According to WIPO data, the earliest Huawei applications to trademark the Hongmeng OS outside China were made on May 14 to the European Union Intellectual Property Office and South Korea, or right after the United States flagged it would stick Huawei on an export blacklist.
Huawei has come under mounting scrutiny for over a year, led by US allegations that “back doors” in its routers, switches and other gear could allow China to spy on US communications.
The company has denied its products pose a security threat.
However, consumers have been spooked by how matters have escalated, with many looking to offload their devices on worries they would be cut off from Android updates in the wake of the US blacklist.
Huawei’s hopes to become the world’s top selling smartphone maker in the fourth quarter this year have now been delayed, a senior Huawei executive said this week.
Peru’s Indecopi has said it needs more information from Huawei before it can register a trademark for Hongmeng in the country, where there are some 5.5 million Huawei phone users.
The agency did not give details on the documents it had sought, but said Huawei had up to nine months to respond.
Huawei representatives in Peru declined to provide immediate comment, while the Chinese embassy in Lima did not respond to requests for comment.


Saudi Arabia relaxes ownership limits for foreign investors

Updated 26 June 2019
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Saudi Arabia relaxes ownership limits for foreign investors

  • Capital Market Authority chairman, Mohammed El Kuwaiz said, ownership in the Saudi capital market by financial investors had increased threefold this year
  • The move aims to help enhance the market’s efficiency and attractiveness and to expand the institutional investments base

RIYADH,: Saudi Arabia has relaxed a 49% limit for foreign strategic investors in shares of listed companies, aiming to attract billions of dollars of foreign funds as the Kingdom opens up the region’s largest bourse to a more diverse investor base.
The country has introduced a raft of reforms in recent years to make its stock market, the region’s biggest, attractive to foreign investors and issuers.
The move aims to help enhance the market’s efficiency and attractiveness and to expand the institutional investments base, the regulator, the Capital Market Authority (CMA), said in a statement on its website.
The Saudi stock market, which opened to foreign investors in 2015, has seen an upsurge in foreign fund flows since the start of the year due to its inclusion in the emerging markets indexes.
“In the beginning of this year, we had only one percent ownership in the Saudi capital market by financial investors, today it is over three percent, that’s more than a threefold increase,” CMA chairman, Mohammed El-Kuwaiz told Reuters in an interview.
“Our hope is that we can see a similar increase in terms of pace and magnitude as we start to create more avenues for foreign investors to come in to the market,” he added.
There will be no minimum or maximum ownership limit, although the owners must hold the shares for two years before they can sell.
Kuwaiz said huge demand from non-financial foreign investors pushed the CMA to grant approval on an exceptional basis to a number of strategic foreign investors to increase their holdings in Saudi listed companies. These included transactions at an insurance firm and a local bank.
Foreign investors have been net buyers of Saudi equities over the past few months, with purchases worth 51.2 billion riyals ($13.6 billion) until May 30. They currently own 6.6% of Saudi equities, of which 3.15% is owned by strategic foreign investors.
Local shares were incorporated into the FTSE emerging-market index in March and the MSCI emerging market benchmark in May this year. The country’s Tadawul All-Share Index is up 11 percent year-to-date.
Strategic foreign investors can take stakes in listed companies by buying shares directly on the market, or through private transactions and via initial public offerings.
Asked how this move would reflect on the Aramco IPO, planned for 2021, Kuwaiz said it would assure that the market has the physical regulatory and investor infrastructure to accommodate a company as large and as extensive as Saudi Aramco.