Prosecute decisively! Will Amazon’s Huawei win this time?

Ren Zhengfei once said in an interview that “Huawei is developing too fast, and we are too busy to collect patent fees”. This sentence was generally considered to be Versailles at the time. Now, it turns out that Ren is always really helpless…

The truth about Huawei suing Amazon!

On October 26, 2022, according to Tianyancha, Huawei Technologies Co., Ltd. added a new court announcement. The court hearing will be held on December 8. The cause of the case is a dispute over infringement of invention patent rights. The defendants include technology giants such as Amazon and Compal Computer. Enterprises, the news came out, causing a lot of attention.

Amazon needs no introduction. The largest e-commerce giant in the United States and the originator of Internet e-commerce, its former CEO is Bezos, the former richest man in the United States. Compal Computer is unfamiliar to many netizens, because this company is called the back of the giant. The giant of the company accompanies you and me as an invisible boss. The laptops you use, such as HP, Dell, and Lenovo, are basically made by this company.

Then the question arises. How did Huawei have patent disputes with these two companies? Moreover, the reason Huawei sued them this time is that the other party has infringed on its own invention patent, so it can only be associated with the intersection of business.

Some industry insiders speculate that Huawei’s lawsuit against Amazon may be related to e-ink screen related products, because Huawei has also launched its own ink screen products, which can be said to be in direct competition with Amazon’s kindle. It is reported that Huawei’s ink screen MatePad Paper has been It was very popular when it was listed, and due to the blessing of Hongmeng OS, its comprehensive competitiveness was also ahead of Kindle for a time, and the praise on JD.com was as high as 95% (more than 94% of Kindle).

It is worth mentioning that Huawei MatePad Paper was launched in March this year, and in June this year, Amazon officially announced that it would stop the operation of Kindle in China on June 30, and Kindle will also officially withdraw from China, which is why now The Kindles of the online e-commerce platforms all come from overseas purchases.

Does Amazon’s Kindle exit have anything to do with Huawei? Which technology patent did Amazon infringe on Huawei’s e-ink screen? It may not be officially announced until the court session, but this incident also shows that Huawei used to be too busy because of its rapid business development. Many giants took advantage of the patent licensing loophole, which will be difficult to happen in the future.

On April 6, 2022, in the minutes of the “Patent Licensing Business Report” issued by Ren Zhengfei, it was mentioned that Huawei’s intellectual property was used for self-defense in the past. Now that it has a certain right to speak, it is necessary to build a reasonable price benchmark. Patent fees should not be charged for the sake of charging, and of course, they should not be too low. Too low a fee will inhibit innovation in the entire society.

Then we might as well take the 5G SEP licensing fee as an example to compare whether Huawei’s fee is reasonable.

As Da [email protected] machineseafengyun said, Huawei’s 5G standard-essential patent license fee is obviously very conscientious compared to Qualcomm, Nokia and Ericsson. In fact, Huawei’s contribution to 5G core patents is ranked first. One, that is to say, it is reasonable to set a maximum price, but Huawei did not do this because of making money, which also reflects Mr. Ren’s position that “you can’t charge for the sake of charging”.

In addition, don’t think that the Amazon defendant is surprised. Ren Zhengfei mentioned in an earlier interview that many companies have been using Huawei’s technical patents without authorization, but Huawei has developed too fast in the past, and they have no time to go to these companies to ask for it. For patent fees, it has been three years since Huawei was sanctioned by the United States. CBG has suffered heavy losses, and its total revenue and net profit have been directly impacted. In fact, it is time to get back what originally belonged to it to supplement the family. There is no free lunch in the world.

According to Huawei’s 2021 annual report, during the reporting period, sales revenue was 636.8 billion yuan, a year-on-year decrease of 28.6%, setting a record low since 2018, and the reasons are well known;

On October 27, 2022, Huawei disclosed its performance for the first three quarters of 2022. During the reporting period, Huawei achieved sales revenue of 445.8 billion yuan, and the profit margin of its main business was 6.1% (a slight increase from 5.0% in H1). Xu Zhijun, the rotating chairman of Huawei, said that the overall operation was in line with expectations, but we should also see the fact that it was the same as the same period last year;

The only variable is that the Huawei Mate 50 series will be released in September. In Q4, it will bring considerable business growth to CBG. However, based on the current downward cycle of the mobile phone industry, the ideal situation is that it can reach 700 billion in 2022. It’s already a miracle.

Therefore, Huawei still needs to do its best to increase revenue and sue Amazon while increasing revenue and reducing expenditure. This is just the beginning…

The strength of Huawei’s counterattack

When it comes to patents, Huawei has absolute confidence and confidence!

By the end of 2021, Huawei holds more than 45,000 valid authorized patent families (more than 110,000) worldwide. The most commendable thing is that more than 90% of the patents are invention patents, which is comparable to the design patents used by some friends. The gold content is much higher:

According to the “Global 5G Patent Activity Report” released by China Telecom in April 2022, Huawei holds 14% of the effective global patent families for 5G, ranking first in the world, behind the US technology giant Qualcomm. Street, it even turned the old communication giants Nokia and Ericsson into slag in seconds;

Huawei’s patent volume has won the first place in the 2021 rankings of the State Intellectual Property Office of China and the European Patent Office;

According to research report data from the patent database IFI Claims Patent Services, in 2021, Huawei will rank fourth in the world with 48,307 patents;

In the US Patent and Trademark Office’s 2021 patent licensing list, Huawei also won the fifth place with its strength;

Huawei’s patents are amazing in both quantity and quality. The core reason is the return of Huawei’s continuous investment in R&D regardless of cost. According to the 2022 Chinese Enterprise R&D List released by the China Enterprise Confederation, Huawei has no suspense to become the champion with 22.62% of R&D intensity. In 2021, Huawei’s R&D expenditure will reach 142.7 billion yuan.

Why do foreign tech giants charge us high royalties all the year round, but now there are still some people who want to prostitute us for nothing? Why can’t we fight back?

In fact, the domestic army, including Huawei, has begun to exert its strength, because everyone has begun to have more and more technical confidence. For example, the global patent war between OPPO and Nokia for more than a year has been one-sided by Nokia from the beginning. The suppression has now turned into a confrontation, and Nokia even took the initiative to seek peace. These all show that we have become stronger and are no longer slaughtered as in the past.

WIPO: OPPO’s 8th in the number of PCT international applications

Back to Huawei, there is another reality that has to be said. Today, China’s base camp has become the home of CBG. In the past few years, Huawei and a series of international giants have had a layer of cross-licensing cooperation. Without being sanctioned, mobile phones can still sell well in Europe and other places. Now the overseas mobile phone business is extremely compressed, and Huawei’s cross-licensing quotas to overseas giants are significantly higher than those authorized by the other party. Then, Huawei will strive for some reasonable licensing fee returns. Reasonable.

Bless Huawei

Bless the national enterprise

Our future will be an avenue of prosperity!

References:

Xinyuan integrates Tianyancha, Huawei’s financial report, intellectual property, etc., some of the source network