Huawei has 9.2 billion yuan in research and development without fear of Nokia suing

With the growing market for smartphones, communications giants have increasingly filed patent litigation against mobile phone companies. In 2016, Huawei began to collect patent fees from Apple; in May and July, Huawei Group and Huawei Terminal Company sued Samsung for two consecutive times, involving patents extending from communication protocols to mobile phone software development technologies; in July, Huawei to T-mobile Initiate a lawsuit.

Feng Xiaoqing, a professor at the China University of Political Science and Law and a doctoral tutor and director of the Institute of Intellectual Property Law, said: “Today, international companies and multinational corporations are highly competitive and intellectual property disputes are increasing, reflecting the fact that intellectual property rights are in contemporary society. It has become an important competitive means and a powerful weapon for enterprises. Intellectual property rights are an exclusive right in law, and intellectual property rights have gained control over market share. Now many companies have seen the importance of intellectual property rights to corporate competition. , attaches great importance to intellectual property rights, and regards intellectual property rights as a means of tactics and competition for market control."

Recently, Nokia filed a patent infringement lawsuit against Huawei, accusing Huawei of violating its three patents involving 4G LTE communications, rejecting its patent licensing agreement, and continuing to use its patents. Huawei responded that there was a cross-licensing agreement between Huawei and Nokia. Huawei hopes to be consistent with the previous terms in the update agreement, but Nokia declined the proposal. Therefore, Huawei will take the necessary measures to defend itself against the allegations made by Nokia Networks.

Nokia sues Huawei

In the indictment, Nokia explained to the court the reasons for the lawsuit: Nokia and Huawei have already discussed the patent issues for both parties, but Huawei is not willing to pay Nokia a fair and reasonable non-discriminatory patent license fee. In explaining the reasons for the prosecution, Nokia wrote: In addition to licensing negotiations, Nokia even provided advice on arbitration, hoping to determine the appropriate license rate through arbitration, and even avoid patent litigation between Huawei and T-Mobile, but It is a pity that Huawei has not accepted this proposal so far.

Prior to this, Huawei filed a patent lawsuit against wireless carrier T-Mobile in the United States, accusing it of infringing its patent rights. Huawei said that in fact, Nokia's real purpose in suing Huawei is to help its customer T-Mobile to contend Huawei's patent litigation.

According to Huawei, Nokia Networks has requested to join Huawei’s lawsuit against T-Mobile USA and to merge the patent allegations with Huawei’s lawsuit against T-Mobile USA. Because Nokia's patents against Huawei are completely different from Huawei's patents against T-Mobile, the court ordered Nokia Networks to separate its claims from patent litigation between Huawei and T-Mobile.

The products that Huawei complained about include Nexus 6p, Honor 5x, P8 lite, GX8, Ascend Mate 2, SnapTo and MediapadT1 8.0 Pro. These products cover almost all of the main models of Huawei except the newly released P9. If Huawei is sued, it will seriously affect Huawei's terminal sales in the United States.

As for the patent litigation with T-Mobile, Huawei responded that Huawei has invested 40 billion US dollars in R&D and related intellectual property development in the past 10 years. Huawei only protects the achievements of these huge investments.

In addition to litigation with Nokia and T-mobile, Huawei has made frequent headlines in recent lawsuits with communications industry giants. On May 25, 2016, Huawei announced that it would file an intellectual property lawsuit against South Korea's Samsung in China and the United States. In its lawsuit, Huawei asked Samsung to claim 80 million yuan for its intellectual property infringement.

About Huawei's litigation part of Samsung, it mainly involves high-value patents for communication technology and software used by Samsung mobile phones. For the purpose of litigation, Huawei said that it hopes that Samsung will respect Huawei's R&D and intellectual property achievements, stop patent infringement without permission, and retain the right to compensation.

Feng Xiaoqing believes that "Huawei attaches great importance to technological innovation and has achieved good results. And Huawei attaches great importance to intellectual property rights and has accumulated a lot of experience in intellectual property protection. The odds are still very large."

In retrospect, Chinese manufacturers seldom took the initiative to attack patent property rights cases in the international market. Recently, Huawei sued Samsung and T-Moblie one after another, which is a big case in the patent litigation. The global mobile phone market is becoming saturated, and the mobile phone industry's landscape and competition focus has also changed. It is well known that only one smartphone may involve thousands of patents. Patents have become a powerful weapon for the mobile phone industry to seize the market and curb competitors. Some prophetic domestic mobile phone manufacturers have stepped up research and development efforts to speed up the strategic layout of patents.

During the decade of 2004-2014, Huawei's patent applications increased rapidly. According to the data, Huawei's investment in R&D in 2014 exceeded the total of nearly 400 A-share companies. In 2015, R&D invested 9.2 billion US dollars, which became the basis for Huawei to dare to confront the international giants such as Samsung, Nokia and T-mobile.

"Some domestic enterprises have insufficient awareness of innovation and intellectual property rights. When they encounter such disputes, they are very passive and can easily lose in international intellectual property litigation." Feng Xiaoqing said that Huawei's series of lawsuits have inspired these companies. To be able to have strong innovation and innovation, and to use intellectual property rights to protect the results, can be invincible.

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