China has finally solved the problem of 5G patent fees and has become the first country in the world to set standards. In a case concerning OPPO v. Nokia, the Chongqing No. 1 Intermediate People's Court proposed two standards, which provided a basis for the collection of patent fees by telecommunications manufacturers. According to the court's ruling, the patent fee for a 5G phone should account for 4 percent of the phone's selling price341%-5.273%, while the value of the 4 systems (2G, 3G, 4G, 5G) is 50:40:5:5. The emergence of this standard is a good thing for all mobile phone manufacturers, especially domestic mobile phone manufacturers, who are no longer charged royalties.
China's 5G patent fee chaos has always existed, major communications manufacturers pay patent fees to Qualcomm, Huawei, Nokia, Ericsson, etc., but there is no unified charging standard. Each manufacturer sets prices at will according to their own wishes, the price of the mobile phone and the degree of market acceptance, which has brought great trouble to the mobile phone manufacturers, especially for domestic mobile phone manufacturers. Their profits are not high, and they have to pay such high patent fees, which is actually equivalent to working for other manufacturers. Therefore, litigation occurs frequently, such as Apple's lawsuit against Qualcomm and Nokia's lawsuit against OPPO.
In order to determine the value of 5G patents and the amount of patent fees in a fair and just manner, China has set an example for the world through the court's ruling. The judgment of the Chongqing No. 1 Intermediate People's Court provides clear criteria to ensure that there is a basis for the collection of patent fees. According to this judgment, the patent fee for 5G mobile phones should be in the range of 4341%-5.273%, while the value ratio of the 4 systems (2G, 3G, 4G, 5G) is 50:40:5:5. Although this is only the standard of the Chongqing No. 1 Intermediate People's Court, it has a demonstration effect and has a benchmarking role in China and even in the world.
For mobile phone manufacturers, especially domestic mobile phone manufacturers, this standard is good news. With this standard, they will no longer be charged royalties. Previously, the lack of uniform standards led to manufacturers having to pay uncertain patent fees, putting a lot of pressure on their profits. And now, they can be allocated according to the standard, up to a maximum of 5273% royalties. In this way, the profits of mobile phone manufacturers will be more stable, and they will be able to better reward their efforts.
The introduction of this standard is also of great significance to the world. As the world's first formally established charging standard, it provides reference for other countries and regions. This will help standardize the collection of royalties worldwide and reduce uncertainty and disputes. By establishing a unified charging standard, global telecom vendors can have a clearer understanding of their rights and obligations, and promote cooperation and development.
In the evolving 5G technology, the importance of patents cannot be overlooked. However, there has always been chaos in the collection of royalties, which has limited the healthy development of the industry. As one of the world's 5G leaders, China has set a model for the standardization of the industry by setting up 5G royalty charging standards. It is hoped that other countries and regions can learn from China's experience, establish their own standards, and contribute to the global development of 5G technology.
Overall, China has solved the long-standing chaos in the industry by setting up a 5G royalty charging standard. The introduction of this standard will provide a basis for communication manufacturers to avoid uncertainty and controversy. This is good news for mobile phone manufacturers, especially domestic mobile phone manufacturers, who will no longer be charged royalties. At the same time, the establishment of this standard has an exemplary role for the world and promotes the healthy development of the industry. I believe that under the guidance of this standard, 5G technology will be able to better bring a faster and more convenient communication experience to the world.