Huawei is the world's 5G patent giant, accounting for about 15% of the global market share. Chinese companies account for five of the top 10 manufacturers with 5G patents, with a total proportion of about 35%. However, Chinese companies have been relatively low-key in terms of patent monetization, rarely taking the initiative to collect patent fees from other companies, and are more in a defensive role. But there was good news recently, ZTE won in the U.S. market, successfully getting Samsung to pay $67.5 million in licensing fees. The lawsuit is filed directly with G+Communications, which holds all 5G patents from ZTE.
ZTE transferred the patents in 2020 to G+Communications, which sued Samsung for infringement in 2022 and demanded damages. The court found Samsung infringing and ordered it to pay $67.5 million in license fees. This victory is undoubtedly an important breakthrough for ZTE. Although the specific benefits are not yet known, according to industry insiders, there is an agreement between the two parties, and ZTE also holds the right to 20% of the proceeds from the transfer of patents. This means that ZTE will receive the corresponding patent fees and gain more influence and status in the field of 5G technology.
The significance behind this lawsuit is not only reflected in the economic interests, but more importantly, the improvement of the reputation and status of Chinese companies in the field of 5G patents. Chinese companies have maintained a strong momentum in R&D and patent applications for 5G technology, but they have been relatively cautious in monetizing their patents. ZTE's success in getting Samsung to pay royalties is an important victory for Chinese companies and sets an example for Chinese companies in terms of their ability to monetize patents. However, Chinese companies still face some challenges in the field of patents. The first is the number of patent applications, although China leads the world in the number of 5G patents, the proportion of high-quality patents needs to be improved.
The second is the ability to monetize patents, and the relatively conservative attitude of Chinese enterprises leads to the possibility of ignoring patent returns, and it is necessary to take the initiative to cooperate with other enterprises in business to improve the commercial value of patents. In addition, Chinese companies are also facing competitive pressure in the international market. Although Chinese companies have made important breakthroughs in 5G technology, they still need to compete with other international giants in the international market. In addition to the competition of patented technology, it is also necessary to compete with international enterprises in terms of product quality and brand image. In conclusion, ZTE's victory in the U.S. market is an important breakthrough for Chinese companies in the field of 5G patents, and it also sets an example for Chinese companies in terms of patent monetization.
However, Chinese companies still face some challenges in the field of 5G patents, and need to be more active in monetizing patents and compete with other companies in the international market to improve their influence and status. According to the situation mentioned in the article, if G+Communications earns revenue from holding ZTE's 5G patents, ZTE will receive 20% of it. So, in 4Of the 800 million yuan in revenue, ZTE may receive 96 million yuan. As for the possibility of ZTE going to the United States to sue Samsung itself, which was mentioned by netizens, this involves the complexity of the legal and judicial process. While the specifics depend on the specific details and evidence of the case, in general, prosecutions are usually filed by the injured party or their representatives.
ZTE's own success in suing Samsung is difficult because it depends on the legal merits of the case, the evidence, and the court's decision. Sometimes, it may be more advantageous to work with a U.S. company and have it prosecuted on its behalf, but the specifics depend on the case-by-case basis.