OPPO and Nokia have finally reconciled globally, what is the essence of the mobile phone patent war?

Mondo Digital Updated on 2024-02-01

What do you think of the final global rapprochement between OPPO and Nokia? What is the essence of the mobile phone patent war? Recently, OPPO announced that it has signed a global patent cross-licensing agreement with Nokia, which covers both parties' standard essential patents in 5G and other cellular communication technologies. The parties will conclude all pending litigation in all jurisdictions upon the signing of the agreement. This means that after 2 years and 7 months, the global patent dispute between OPPO and Nokia has finally ended. What are your thoughts on this? What is the essence of the mobile phone patent war?

OPPO and Nokia have reached a global patent cross-licensing agreement, which means that more than two years of patent dispute between them has been resolved. This proactive business decision will enable both parties to share each other's technology and reduce the cost of using the patent, thereby driving the sharing and adoption of technology.

The essence of mobile phone patent wars usually involves the following aspects:

1. Technical authorization

As competition in the smartphone market intensifies, patents become a means of competition between companies. Companies with core patents can reap the benefits of licensing, while also restricting the use of technology by competitors.

Second, don't think that a company has no technical strength without commercial products, although Nokia's mobile phone business has been impacted by the smartphone market and does not have much share, but focusing on the 100-yuan machine market has also made a lot of achievements, so many years Nokia has also accumulated a lot of terminal technology, and Nokia also has a strong influence in 5G technology!

2. Business strategy

Patent litigation is often seen as a business strategy where companies use patents to protect market share or as a means of entering new markets. It can be used as a commodity, as a weight for self-technical protection and to win market competition.

Moreover, patents have also become a key way for some companies to make profits, because applying for a patent means that such technology will be protected and cannot be used without permission. In business, it can also allow enterprises to maintain a certain competitive advantage. It can also increase your brand value and business strength, and the most important thing is that there are many investors who will invest because your business has some technology.

3. Standard Essential Patents (SEPs).

Standard Essential Patents (SEPs) refer to:Patents that are inevitably involved in the implementation of a certain technical standard。SEPs are a special type of patents that are closely related to the formulation and implementation of technical standards. When a technical standard is widely accepted and applied, any entity implementing the standard may need to use certain patented technologies. If these patented technologies are indispensable for the implementation of the standard, then these patents are referred to as SEPs.

In the field of communication technology, especially in emerging technologies such as 5G, standard key patents play an extremely important role. Since these patents are required for any equipment manufactured or services provided in accordance with the technical standard, the question of the cost of using these patents is often the focus of controversy.

4. Global business

Due to the nature of globalization, international patent disputes often arise in the mobile phone industry. Companies will file lawsuits or counterclaims in multiple countries to protect their rights and interests in the global market. For multinational companies, patents are an important tool for them to protect their innovations globally and commercialize them in different countries and regions.

Patents that master key technologies can give companies the opportunity to participate in the process of developing international standards, thereby influencing the direction of the entire industry. Through a global patent portfolio, enterprises can allocate R&D resources more effectively and avoid duplicating the same technology in different countries. Owning patents on a global scale can reduce the risk of patent infringement allegations in overseas markets, reducing potential legal disputes and associated costs. By filing and maintaining patents in multiple countries, companies can protect their innovations from unauthorized production, use, or sale by others on a global scale. Companies that also own patents can use their patent rights to establish a competitive advantage in the global marketplace and expand their market share through patent licensing or cross-licensing.

Overall, OPPO's settlement with Nokia is likely to have some impact on other ongoing patent disputes, demonstrating the possibility and importance of resolving patent disputes through negotiation. At the same time, this also provides convenience for OPPO to further expand the international market, which is conducive to the promotion of its globalization strategy. What do you think about this, welcome to follow my entrepreneur Li Meng and communicate with me.

OPPO and Nokia Global settled

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