Huawei and Nokia renewed the patent license agreement, and 45% of global data communications will be licensed by Huawei in 2022

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Text｜Zhang Jingyi

Editor｜Su Jianxun

On December 23, Huawei and Nokia announced the renewal of the patent license agreement between the two parties, and the specific terms are kept secret.

“Many Chinese companies are participating in the world’s mainstream patent pools, some as right holders and some as users. Usually, large manufacturers are both right holders and users, so the licenses between large manufacturers are usually cross-licensing.” According to Shen Hongfei, vice president of Huawei’s legal department and head of the major project department, in a cross-licensing agreement, each party obtains the patent license of the other party, and which party will pay the other party a net license fee depends on the value of the patents of both parties and market conditions. .

It is reported that it is estimated that in 2022, about 350 million 5G mobile phones and 15 million networked vehicles will be licensed by Huawei; about 30 million household user broadband access terminals will be licensed, accounting for 45% of the world’s data communication connections.

Industry insiders believe that both Huawei and Nokia have high-value patents in the ICT (information and communication technology) field and around the world. Huawei is the world’s largest telecommunications equipment manufacturer, while Nokia is one of the leading manufacturers in various fields such as cellular networks, optical terminals, and fixed wireless access. The mutual recognition of the value of intellectual property among enterprises can promote high-value standard technology research “investment- Return-reinvestment” positive cycle of innovation, enhance the sustainable innovation capability of the industry, and provide consumers with more competitive products and services.

Currently, Huawei owns about 10% of the world’s 4G patents, about 20% of 5G, Wi-Fi 6 and H.266 patents, about 30% of OTN and 10G PON patents, and about 20% of IETF patents. In terms of R&D behind patents, in the past ten years, Huawei’s R&D expenses have reached 845 billion yuan, of which 2021 R&D expenses will be 142.7 billion yuan, accounting for about 22% of the annual revenue, and it ranks among the EU’s industrial R&D investment rankings No. 2 in the world. In the first three quarters of 2022, Huawei’s research and development expenses will be 110 billion yuan, exceeding the same period last year.

Fan Zhiyong, Director of Huawei’s Intellectual Property Department, said: “In 2022, we have signed more than 20 new or renewed license agreements, including smartphones, Internet of Vehicles, networks, Internet of Things and other fields. About 15 car companies have reached a license to provide our advanced patented technology to well-known car companies including Audi, Mercedes-Benz, BMW, Porsche, Renault, Suzuki, Lamborghini, Subaru and Bentley. We are very happy to see our technology in It has made an important contribution in the digital transformation of automotive and other vertical industries.”

Digital transformation brings huge development opportunities to the ICT industry, and the efforts of the entire industry are required for mainstream platform technology standards. It can be seen that the practice of mutual recognition of the value of intellectual property rights among more and more companies, including Huawei and Nokia, is conducive to continuously promoting and attracting more industry participants to invest in R&D and innovation, maintaining the innovation environment of the industry, and improving the entire industry. sustainable innovation capability of the industry.

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