Tencent Technology News June 21, according to foreign media reports, in order to weaken the dominant position of US Apple and South Korea's Samsung Electronics in the global arena, Chinese smartphone manufacturers are constantly strengthening patent construction as a "bullet" of offense.
Chinese companies such as Huawei, ZTE and Lenovo are acquiring patents through licensing agreements, acquisitions, and high investment in research and development. This series of measures may bring more legal troubles to Apple and Samsung Electronics, and the scope of application is not only in China, but also may be extended overseas.
According to the Geneva-based World Intellectual Property Organization, Huawei is the company that applied for the most international patents in the PCT (Patent CooperaTIon Treaty) last year. This makes it easier for the company to initiate patent litigation in multiple countries. The number of patent applications ranked behind Huawei is the US chip maker Qualcomm and China's ZTE.
Apple and Samsung Electronics face serious challenges in the development of the Chinese market, and patents will be a stumbling block. Recently, the Beijing Intellectual Property Office found that the design of Apple's iPhone6 ​​and iPhone6 ​​Plus infringed the patent rights of Shenzhen Kenli and ordered Apple to stop selling. The unexpected judgment caused quite a stir.
At the same time, Huawei and other Chinese companies are also trying to build their patent weapons, which is difficult for the two giant hairs of the industry. According to market research firm Gartner, China has three of the world's top five smartphone manufacturers, including Huawei, which ranks third.
Bai Jianmin, a partner at Allen & Overy LLP, which provides international patent strategy consulting for Chinese companies, said: "We have seen a large number of Chinese companies applying for patents abroad, and the transactions and legal disputes involving patents and technology are increasingly many."
A single smartphone product contains thousands of patents. The complexity and thorny nature of this issue has led Apple and Samsung Electronics to bicker over courts around the world since 2011.
Huawei's patent portfolio is mainly through huge investment in research and development. In the past five years, Huawei has invested nearly $30 billion in research and development. Last year, the company's R&D spending grew 46% to $9.2 billion, while Apple's R&D investment in the previous fiscal year was $8.1 billion. Huawei currently has 16 R&D centers around the world.
Huawei's progress in patent portfolio is obvious to all. Earlier this year, the company signed a patent licensing agreement with Apple, which will pay royalties to Huawei.
Yu Chengdong, head of consumer products at Huawei, said in Beijing in January that the company will invest more money in research and development, and the bonuses of engineers will increase as the business grows.
Other Chinese smartphone makers such as Xiaomi are buying patents from Western competitors to reinforce the short board. Last month, Xiaomi agreed to buy about 1,500 patents from Microsoft. The purpose of Xiaomi is to one day sell products to developed markets.
Xiaomi Vice President Hugo Barra said the company will systematically build patented weapons for defense through applications and acquisitions. In Barra's view, Xiaomi will expand to the US and Europe in the future.
Xiaomi said that it applied for 3,738 patents in China and overseas last year, up from 2045 in 2014. However, analysts believe that the number of patents in Xiaomi is not enough to establish a foothold in developed markets such as the United States.
Analysts also said that success in the smartphone market requires more conditions, not just investments in patents and research and development.
Lenovo Group acquired Motorola Mobility for $2.91 billion in 2014, and the main driver of its acquisition was the patent owned by the latter. However, even with the patents of Motorola Mobility, Lenovo Group is still struggling in the global smart phone field.
According to market research firm Canalys, ZTE, which is actively involved in patent portfolio, R&D and marketing, is currently the fourth-largest smartphone manufacturer in the United States. However, the company had trade frictions with the US government earlier this year and is currently actively coordinating the settlement.
Huawei still hopes to create trouble for industry rivals through huge investment in research and development. At Huawei, the smartphone antenna design team in Beijing has expanded tenfold in the past five years, reaching around 50 people. The team applies for four to five new patents each year.
When Apple released the iPhone 6s and iPhone 6s Plus last year, the team compared the performance of the Apple mobile phone antenna with Huawei's own antenna.
An employee of Huawei said: "We are still behind Apple, but we think the gap is narrowing."
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