Technology

Huawei: Patent fees can't be too low, or no one will want to invest in R&D anymore

Huawei: Patent fees can't be too low, or no one will want to invest in R&D anymore

Tech Planet April 6, according to Sina Technology, Huawei's Voice Community today published the minutes of the "Patent Licensing Business Report" issued by Ren Zhengfei (hereinafter referred to as "the minutes").

The summary said that Huawei should establish scientific and reasonable intellectual property values to build the company's image as an innovator, and also facilitate sustainable and quality development of the company.

The minutes also pointed out the need to develop IP strategies with the times and the commercial success of service companies; and to actively explore technology secret licensing models and industrial promotion mechanisms.

Huawei's Intellectual Property Department said, "Patent fees cannot be charged for the sake of charging; nor can they be too low; if they are low, it will curb the innovation of the whole society, no one will be willing to invest in R&D anymore, it will form our de facto monopoly, and it is not in line with the principle of fairness and reasonableness without discrimination as required by law."

Huawei's Intellectual Property Department pointed out that previously, Huawei's IPR was for self-defense and was an effort to secure its business. Through so many years of accumulation, it has formed high-value patent packages in several major fields such as 5G, WiFi 6 and audio and video codecs, optical transmission, and optical intelligence, and has a certain right to speak.

Huawei's Intellectual Property Department also pointed out that: to establish scientific and reasonable intellectual property values, first, to continue to protect research and innovation achievements and actively build high-value patent packages globally; second, to continue to play the role of patents to protect the security of the company's global business; third, to establish Huawei's image as an innovator through reasonable fees; and fourth, to cooperate through building partners, selected patent pools and patent operating companies.

The following is the full text of the minutes of Huawei's "Report on Patent Licensing Business".

On March 16, 2022, the Intellectual Property Department conducted a briefing on patent licensing business to Mr. Ren, resulting in the following meeting points.

First, the essence of the patent system is to stimulate innovation, promote technology disclosure and fair and extensive use by the industry, thus promoting industrial prosperity and social progress; we need to establish scientific and reasonable intellectual property values to establish the company's image as an innovator, and also facilitate sustainable and quality development of the company.

We need to establish scientific and reasonable intellectual property values. First, we should continue to protect research and innovation results and actively build high-value patent packages globally; second, we should continue to play the role of patents to protect the company's global business security; third, we should lay down Huawei's image as an innovator through reasonable fees; fourth, we should cooperate through building partners, selected patent pools and patent operating companies.

Previously, our intellectual property was for self-defense, an effort to keep our business safe. Through so many years of accumulation, we have formed high-value patent packages in several major fields such as 5G, WiFi 6 and audio/video codecs, optical transmission, and optical intelligence, and have a certain right to speak. We need to build a reasonable price benchmark, so that industry can use our patented technologies fairly and reasonably, and while receiving appropriate R&D returns, it is also conducive to establishing our image as an innovator in the international community; we have to pay reasonably when we use other people's patents, so that we can establish IP values and soil conducive to innovation around the world.

Patent fees cannot be charged for the sake of charging; nor can they be too low. If they are low, they will curb the innovation of the whole society, and no one will be willing to invest in R&D anymore, which will form our de facto monopoly and will not comply with the principle of fairness, reasonableness and non-discrimination required by law. People who invest in R&D expect to earn a little more than they put in, and there are bound to be many failures in R&D. The cost of failure should also be included in the cost, so that people will be willing to continue to invest in in-depth R&D, forming a positive cycle. At the same time to be ready to fight a "protracted war", not seeking quick wins, but also not afraid of defeat, to collect more or less are successful. But the fee is not the ultimate goal, the main thing is that we through communication and negotiation, to sort out the relationship between the two sides. In the process of negotiation, we gradually forge a team that is good at communication and negotiation. When one day we reach the position of world leader, we can reasonably allocate the value chain, and at that time the value of you "high priests" will be reflected.

Second, "guide to show the way" "high monk enlightenment", share the experience of reading patents, enlighten young people rapid breakthrough.

We need to read more patents and public insights to lead our R&D staff and find the tricks from them. We are not trying to infringe others' patents, but to stand on the shoulders of giants to move forward. Theories are open in the world, and technological innovation is based on open sharing, mutual learning and mutual respect (trading) in order to develop. We have to make the best products in the world based on available licenses and based on patent rules, not to bury our heads in the sand without understanding the innovations that others already have, and not to take detours to generate more consumption.

Our young people are very smart, but they are not particularly clear about the overall roadmap; while you have been "facing the wall" for ten years, reading a lot of other people's patents and our own patents, you will definitely have some insights. You can publish your insights on the platform of "Huang Danian Tea Thinking House" and the community of the heart through small videos and live broadcasts, pointing out a roadmap to young people, which is not a "high priest enlightenment"! They are stepping on the shoulders of giants when they rush upwards. It is more important for you to tell young people where the "shoulders of giants" are and what they look like, so that they can break through earlier. Some videos and live broadcasts with good explanations and high click-through rates can also be rewarded, such as issuing a medal. Whether the number of medals can be used as one of the reference criteria for the rating of your "senior monks" can be further discussed.

Third, to keep pace with the times to develop intellectual property strategy, the commercial success of the service company; actively explore the technology secret licensing model and industrial promotion mechanism We are a product revenue-based company, in the intellectual property strategy and many product companies in the industry have common ground; we have the basis of mutual patent cross-licensing, the use of each other's patented technology, can provide better products for the market, the ultimate benefit is the consumer The ultimate beneficiaries are the consumers and customers, and thus the whole industry chain is prospered. In this process, we have also accumulated experience in patent licensing, litigation and trading. In the past, when we talked about intellectual property rights, we mainly referred to patents, and mainly to standard-related patents. Nowadays, some research and innovation results are not suitable for disclosure through patents, and are more suitable for protection in the form of technical secrets, such as material formulas, internal core algorithms, process technology, etc. We need to keep pace with the times to develop intellectual property protection strategy, explore and think about the licensing mode and promotion mechanism of technology secrets. In particular, some technology secrets, we do not produce and sell related products, may be "high", resulting in waste, and is not conducive to the prosperity of the industrial chain, and ultimately affect our own development. We need to explore the appropriate licensing model and promotion mechanism, authorized to external manufacturers, to solve the problem of industrial competitiveness, to play its commercial value.

Fourth, dare to break through and firmly follow the path of factual standards; the intellectual property system should have strategic thinking and systematically protect our research and innovation achievements.

We are going fast and people can't keep up, but there must be a law of interconnection and interconnectedness, and that is the de facto standard. We are taking our own path, and the factual standard has great significance for the future development of our company; we will have a lot of strategic breakthroughs in this process, and the research and innovation results generated by these breakthroughs will not all be patented or protected by technical secrets afterwards, intellectual property experts have to think clearly, to look at the whole world and assess the situation, then you are not a strategist, right? Intellectual property system should have strategic thinking, according to business characteristics, comprehensive use of patent protection, technology secrets and other intellectual property protection and authorization mechanisms, systematically protect the research and innovation results of our construction of public standards, factual standards, open source and open ecology.