The 5G technology standard has not yet taken shape, and the communications giant has begun to plan how to charge patent fees to mobile phone companies. According to foreign media reports, Swedish telecom giant Ericsson has announced the disclosure of its 5G patent license fee. This is the first company in the communications patent giant to disclose 5G patent license fees.
Ericsson Chief Intellectual Property Officer (CIPO) Gustavo said in an interview with Bloomberg that Ericsson's 5G patent license fee is set at $5 per unit for high-end handheld devices, while license fees can be lowest for low-end handheld devices. Up to $2.50 per unit.
The "Daily Economic News" reporter interviewed Huawei and Qualcomm related person in charge, did not disclose the intention of charging 5G patents to terminal enterprises. Wang Yanhui, the China Mobile Alliance, said: "Ericsson’s initiatives are mainly aimed at Samsung and Apple. Ericsson’s patent disputes with Apple have also been tried in advance.
At present, the world's major communication vendors are jointly promoting the formation of next-generation communication technology standards, and the official commercialization of 5G is expected to be in 2020. Ericsson hopes to start patent technology negotiations in advance.
Gustavo said in an interview: We hope to provide reference for holders and companies of other patents by publicly setting reasonable royalty prices. Obviously, Ericsson hopes to establish a rule standard in the industry before the 5G standard has yet to be formed.
Ericsson believes that this royalty price setting has two basis factors: first, Ericsson FRAND terms, namely fair, reasonable, non-discriminatory; second, Ericsson as a standard The identity of one of the developers of patented technology.
Unlike the previous licensing rate model based on the price of the whole machine, according to Gustavo, Ericsson provides a fixed patent license fee of $2.5-5 per handheld device based on the 5G patent. Previously, "Daily Economic News" learned from terminal manufacturers that Ericsson tried to collect patent standards on 3G patents at 1% of the price of the whole machine.
It is worth noting that the licensing fee that Ericsson said at this time covers only the standard essential patents of 5G technology, and does not include application-type patents.
Or to circumvent patent disputesRecently, the latest financial report released by Ericsson shows that the overall sales performance of the company in 2016 was 22.26 billion Swedish kronor (US$2.528 billion), a significant drop of 10% compared with the performance of SEK 24.696 billion in 2015, mainly due to 2016. The patent license revenue†has a large decline.
Among Ericsson's patent revenues, Samsung and Apple are their biggest contributors. According to IDC data, the total global smartphone sales volume in 2016 was 1.47 billion units, of which the top five mobile phone manufacturers in total sales were Samsung, Apple, Huawei, OPPO and vivo. Samsung fell 3% from 2015, while Apple fell. 7%, and transmitted to Ericsson, its 2016 patent license revenue decreased by 7% compared to 2015.
In recent years, there has been a constant friction between the communications giant and the terminal companies on patent issues. For example, in January this year, Apple filed a lawsuit against Qualcomm for a refund of up to $1 billion in patent fees.
Ericsson and Apple also had a lawsuit in 2015. In January 2015, Apple felt that Ericsson’s license fees for 2G, 3G, and 4G/LTE related patent technologies were too high. After the agreement with Ericsson expired, it refused to sign a new agreement and added you to the United States. The Northern District Court of the State sued Ericsson. In the face of Apple’s lawsuit, Ericsson fought fiercely. Until December 21, 2015, Apple and Ericsson fully settled and signed a seven-year, new global patent license agreement, and terminated or withdrawn each other's patent litigation initiated by the other party as the defendant.
"Ericsson intends to push the 5G patent licensing program. The most important purpose should be to avoid similar patent disputes between Qualcomm and Apple. Ericsson's main target is Samsung and Huawei, starting negotiations one or two years ahead of schedule to protect patent rights." Wang Yanhui analysis.
Ericsson ordered the fireOn March 21st, the reporter of "Daily Economic News" interviewed the relevant leaders of Qualcomm and Huawei, but the two companies did not disclose the plan to collect patent license fees. Obviously Ericsson's action was very sudden.
"The 5G patent fee model introduced by Ericsson has changed the previous method of proportional collection. The cost of 5G should be superimposed on the previous patent fees, which is definitely a burden for the terminal enterprises. Ericsson's plan should also be a test. Huawei and Qualcomm have even more leading reserves in 5G technology. Ericsson has ordered the fire, and Huawei and Qualcomm may follow suit." Wang Yanhui analyzed.
Ericsson's patent licensing revenue is not just about Samsung and Apple, it is tied to the global smartphone market. For example, on January 14, 2016, Ericsson and Huawei renewed the global patent cross-licensing agreement. As part of the renewal agreement, Huawei will pay license fees to Ericsson based on actual sales from 2016.
On December 11, 2014, Xiaomi was sued by Ericsson in India to the High Court of Delhi, India for allegedly infringing eight patents including ARM, EDGE, 3G and other related technologies owned by Ericsson.
In the 5G research and development, China's smart phones are also actively participating. OPPO Vice President Wu Qiang said in an interview with the "Daily Economic News" reporter that OPPO joined the international 3GPP technology organization in 2015 and deeply participated in the formulation of international and Chinese 5G standards, and will soon join the GSMA. At the recent GTI Forum in Barcelona, ​​vivo gave a speech on “Research Progress in High-Power Terminals†as a representative of mobile phone manufacturers.
However, compared with the communications giants, the gap in R&D between Chinese mobile phone manufacturers is obviously very large.
A senior executive of a domestic mobile phone company, who asked not to be named, commented on the "Daily Economic News" reporter Ericsson's move: "There is still a very early stage of 5G standard formulation, the 5G specification has not yet been formed, and the basic patents of various companies The proportion of (SEP) is far from certain. It is too early to propose charges; patent fees are raised at the stage when the 5G industry has not yet developed, which is suspected of killing chickens and taking eggs, which is not conducive to the development of the entire 5G industry."
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