Huawei said the maximum license fee for a single phone that follows the 5g standard is $2.50 (about 16 yuan), and provided a reasonable percentage rate applicable to the price of the phone.
Regarding whether 5g patent license fees will become an important source of revenue for Huawei, Huawei said that the main source of revenue is still operating products, and intellectual property income has not become the main source of revenue.
As for whether Huawei will enter the U.S. market through the 5g patent curve, Huawei said that there are some prohibitions in the United States, which makes it difficult to sell products and services. “However, intellectual property rights will not be distributed in a single country. At present, there are more than 10000 authorized patents in the United States, which will bring value to American industries. Huawei is the main contributor of 5g patents, and has the responsibility and obligation to license the standard core patents to the entities that need to use them, including American companies. Of course, they need to pay for their use. “
The reason why Huawei has this confidence is that it has enough patent reserves. According to the white paper “white paper 2020 on innovation and intellectual property rights” issued by Huawei, continuous innovation investment has made Huawei one of the largest patent holders in the world. By the end of 2020, Huawei has held more than 40000 valid patents (over 100000 pieces), of which more than 90 patents are invention patents.
It is reported that Huawei began to apply for the first Chinese patent in 1995 and the first US patent in 1999. In 2008, it ranked first in the World Intellectual Property Organization (WIPO) PCT patent application for the first time. In 2019, Huawei ranked second in the number of patents granted in Europe and tenth in the United States. Huawei is also the company with the largest number of authorized patents in China.
Ding Jianxin disclosed that Huawei expects its intellectual property revenue to be between us $1.2 billion and US $1.3 billion from 2019 to 2021, and announced Huawei’s charging standard for 5g multi-mode mobile phones: Huawei’s maximum license fee for a single mobile phone that complies with 5g standard is US $2.50, and provides a reasonable percentage rate applicable to the price of mobile phones.
“Huawei, as an important technology contributor to 5g standard, follows the frand principle. We hope that the information provided today can provide transparent cost expectations for the implementers of 5g technology, increase the certainty of investment, and promote the popularization of 5g technology,” he said. Our charging standards mainly come from two aspects: one is to consider Huawei’s R & D investment over the years, and the other is to consider the price level acceptable to the companies that purchase patents. “
In fact, Huawei has long been planning to charge 5g patent fees. Many people even think that Huawei charges too late. In June 2019, Ren Zhengfei responded in a forum: “Huawei has developed rapidly in recent years. We are very busy and have no time to charge. We will charge some fees at leisure, but not as high as Qualcomm.
As Huawei has the largest number of 5g patents in the world, there are concerns about whether Huawei will raise its price without authorization. However, Huawei said in a statement that it would abide by the frand principle as always and would never blackmail any other company or society to reduce the license fee for 5g patents as much as possible.
Ren Zhengfei disclosed that many big companies in the world are paying patent fees to China, but he did not publish a specific list. According to the materials provided by Huawei, Huawei’s intellectual property revenue has exceeded US $1.4 billion since 2015.