Those with “intellectual property” are powerful: Huawei’s collection of patent fees is symbolic

Huawei, a Chinese technology company with a large number of core patents in the 5G field, will charge patent license fees from mobile phone manufacturers. On March 16, Huawei held a press conference for its innovation and intellectual property white paper (2020) at its Shenzhen headquarters, announcing that it will implement a patent licensing fee plan for 5G equipment starting in 2021, and the patent licensing fee for a single 5G mobile phone will be capped at $2.50.

“Patent cross-licensing” among enterprises is a common practice in international R&D cooperation and product development.

Respecting and protecting intellectual property rights is a necessary condition for innovation. Huawei’s collection of 5G mobile phone patent licensing fees is in line with international rules, which not only shows the increasing awareness of intellectual property rights among Chinese companies, but also shows the confidence and determination of Chinese companies to participate in international competition in accordance with international rules.

In fact, due to the division of labor, different technology companies gradually gain comparative advantages in patents in their respective fields, and “patent cross-licensing” among companies is a common practice in international R&D cooperation and product development.

Those with “intellectual property” are powerful, and protecting intellectual property is protecting innovation. Huawei’s adjustment of its specific patent charging strategy is a landmark step for Chinese companies to enter the international intellectual property competition arena, and it has a “model” significance for the development and growth of Chinese technology companies.

Huawei’s confidence comes from its determined pursuit of original innovation. For decades, it has only been aimed at a “city wall charge” in the field of communications, and Huawei’s “ammunition” is research and development. Statistics show that Huawei’s annual investment in R&D accounts for 10%-15% of its revenue, and the cumulative R&D investment in the past nine years has reached 90 billion US dollars.

As of 2020, Huawei has more than 100,000 patents, of which 5G-related patents account for more than 6%. According to a report released by a third-party agency, as of October last year, Huawei’s 5G patent applications ranked first in the world with 6,372.

Tech companies’ dedication to research and development has finally gained a competitive advantage, and breakthroughs in the accumulation of “a thousand miles” in research and development are inseparable from the formation and improvement of a positive incentive mechanism. In the future, Huawei’s main business will still be operating products and services, but a certain level of patent fees will undoubtedly help to form a positive orientation of “knowledge is valuable” and help create a good social atmosphere that respects intellectual property rights.

As Song Liuping, Huawei’s chief legal officer, said, he hopes to show the history of Huawei’s technological innovation and development and its respect, protection and contribution to intellectual property through the white paper, and hope that it can be more transparent so that everyone can see how Huawei has come to today.

We are happy to see that Chinese technology companies represented by Huawei are stepping onto the international intellectual property stage with a confident and calm pace, and maintain a positive and gentle attitude of cooperation in the competition and development.

Source: C114 Communication Network

Author: Sun Fei and Bai Yu

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