Is the patent war going to end? Google opens 230,000 mobile phone patents

Electronic enthusiasts eight o'clock in the morning: the mobile phone industry's four-patent patent war, as long as Google shots will die down?

The answer may be no.

A few days ago, Google launched a patent cross-licensing program called "PAX". Mobile phone manufacturers joining the program will be able to use the patents of member units for free. Of course, the mobile phone manufacturers that join will also need to open their patents free of charge.

At the beginning of the program, it attracted the participation of many mobile phone manufacturers including Samsung, LG, Foxconn, Coolpad, HMD, HTC, BQ and Allview. Together with Google itself, the PAX patent cross-licensing program covers up to 230,000 patents. Pieces.

As long as you join the program, you can use up to 230,000 patents related to "Android and Google Apps" for free, which is a "small pie" for new smartphone players or foundries.

It is said that the original intention of Google to launch this program is to deal with the "Patent Troll" company.

However, is Google’s move a good deal for “patent hooligans” or a station for Huawei’s domestic mobile phone manufacturers to “rob the rich and help the poor”?

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For a time, the relevant vendors that once or now occupy an important position in the mobile phone industry are not on the way to prosecute others, or on the way to be sued by others.

From the perspective of the main body of patent litigation disputes, there are many past or current mobile phone manufacturers, such as Nokia, Ericsson, Samsung, Apple and Huawei, and many of them belong to NPE or PAE institutions.

For example, Unwired Planet InternaTIonal (UPI), which has caused Huawei to lose multiple lawsuits in the UK, belongs to an NPE or PAE organization.

The company was originally a mobile software company, but in May 2012 it stopped its current product and business and transformed it into an authorized and patent protection company. Since then, it has begun to acquire patents in the market and carry out patent payment licensing business.

The so-called NPE (Non-PracTIcing EnTITIes, Chinese is a "patent non-implementing entity") or PAE (Patent Assertion Entity) means that it does not engage in the production or manufacture of patented products but through patents. A company or company that licenses the proceeds.

In the eyes of many people, a small number of PAE institutions are also regarded as "Patent Troll."

The root cause lies in the fact that these companies are not directly engaged in production and manufacturing, and the respondent manufacturers have lost the possibility of cross-licensing their patents. Once they are sued, they must pay the patent fees unless they win the case.

For example, UPI not only sued Huawei in 2014, but also sued Google and Samsung. However, Google and Samsung reached a settlement with UPI in 2015 and 2016, respectively, and began paying patent fees to each other.

Wishful thinking: Google PAX patent cross-licensing program has limited effect on patent litigation or disputes

It is undeniable that in the field of smart phones, there are indeed a large number of patent agencies or companies that make a living from patent-paid license revenues. Among them, there is a small number of so-called “patent hooligans”.

However, it should be said that relying on patent-paid licenses to obtain revenue is not inconsequential, which is originally the relationship between normal technology research and development and market returns. Many companies, including Ericsson, Samsung, Nokia, Huawei, Qualcomm, etc., have more or less income from this area.

From the perspective of the entire patent operation environment, it is not appropriate to hold the attitude of “dumping the dirty water in the bathtub and the children” and fully deny the legitimacy and rationality of the patent operation.

Judging from the patent disputes involved in the current major smartphone manufacturers, patent disputes from the field of communication technology and disputes based on standard essential patent licenses are clearly higher.

For example, the dispute between Ericsson and Xiaomi in India, the dispute between Nokia and Apple, and the dispute between Apple and Qualcomm in China, the United States and the United Kingdom. Many of these disputes are caused by communication technology or licensing of standard necessary patents.

To put it simply, the patents held by most "patent rogue" companies may rarely be directly related to the "Android system and Google applications" field, and patent disputes based on "Android and Google applications" are limited.

Therefore, the establishment of a free shared patent pool does not effectively prevent or eliminate the prosecution from “patent rogue” companies.

If Google’s PAX patent cross-licensing program is not a good medicine for a “patent rogue” company, then what type of company is better for the company?

Robbing the rich and helping the poor: Google's PAX plan is more like forcing Huawei, ZTE and other domestic mobile phone manufacturers to submit "names"?

From the perspective of the vendors that have joined the program, some manufacturers have accumulated a lot of patents, such as Samsung, but some manufacturers have limited patents, such as HMD, and some manufacturers have weak innovations, such as HTC. In addition, Foxconn is a generation. Representative of the factory.

Therefore, for those companies that have already joined, it is clear that the advantages outweigh the disadvantages.

According to Google's statistics, 400 manufacturers and 500 telecom operators have joined the Android ecosystem. These companies have produced more than 4,000 Android devices last year, and the number of Android users worldwide has exceeded 1.6 billion.

From the perspective of Google, as the "big brother" of the Android camp, it certainly hopes that the number of manufacturers in the Android camp is increasing, and the market share is getting higher and higher.

Therefore, for the friction or conflict between smartphone manufacturers in the Android camp, such as the contest between Huawei and Samsung, Google does not want to happen.

However, from the perspective of smartphone manufacturers, the fierce competition in the market and the cruelty of users' competition require continuous R&D investment and innovation in exchange for chips, which cannot be synchronized or consistent with Google's ideas.

For example, Huawei just won the lawsuit against the Samsung patent war in the first trial of Quanzhou Intermediate Court. The court awarded 80.5 million yuan and banned 22 Galaxy mobile phones. The patents involved are related to the smartphone control technology under Android.

Therefore, for many domestic mobile phone manufacturers including Huawei, ZTE, Xiaomi, Meizu, OPPO, vivo, etc., the addition of the PAX patent cross-licensing program is more beneficial than harm, or more harm than good, may still be an unknown.

On the one hand, joining the plan will definitely result in a reduction in the number of “patent rogue” lawsuits. On the other hand, they will invest a large amount of R&D every year. If they cannot be converted into market sales or obtain patent license payment income, then this high investment may be It is unsustainable.

Obviously, the value or role of the PAX patent cross-licensing program for OEMs such as HMD and OEMs such as Foxconn is far greater than that for companies such as Huawei and ZTE.

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