Meizu Li Nan: How do I look at the multi-game behind the case of Qualcomm v. Meizu?

Lei Feng network: According to author Li Nan, Meizu vice president.

On June 24, 2016, Qualcomm sued Meizu Technology to the Beijing Intellectual Property Rights Court, claiming that Meizu used 3G/4G related patents but did not pay Qualcomm to compensate them. The Meizu also held a media communication meeting on June 28th. Meizu Vice President Li Nan represented the Meizu to illustrate the attitude of the matter:

Meizu is a company that supports patent protection and believes that patents should be protected and paid for.

In China, Meizu must strictly abide by the relevant laws regarding patents.

The only method of payment is Qualcomm’s unilateral contractual offer. Even so, Meizu is still willing to negotiate with Qualcomm.

On July 1, Li Nan wrote an article to comment on this matter. The following is the text of the article:

Many people regard this Qualcomm v. Meizu as a patent holder’s claim. But in fact, if you put things into a longer time dimension, there will be a totally different understanding .

First, standard-essential patents can be re-negotiated first, not how Qualcomm wants to receive it. Fair, reasonable and non-discriminatory are the most basic principles.

So who can influence how to close? Basically Qualcomm, administration, branding, and justice.

......

1, the administrative bottom line

Before 2015, the Chinese administrative system represented by the National Development and Reform Commission had been pursuing the monopoly issue of Qualcomm. Qualcomm is naturally not going to make progress on the basis of the investigation of the administrative system, and its own claims are not solid enough.

Qualcomm's rectification provisions were accepted by the National Development and Reform Commission in 2015, and Qualcomm has already reached the bottom line of the Chinese administrative system after receiving a fine from Qualcomm.

However, the Development and Reform Commission left a space for Qualcomm and the brand game, that is, "support Qualcomm charged a reasonable fee."

......

2, the bottom line of the brand

Game, it means negotiation, negotiation is also the process of high pass to explore the bottom line of the brand. A high public GM agreement and a Qualcomm black box agreement are used to explore the bottom line of Chinese mobile phone brands.

Because each brand's development path and the chips in the hand are different, it is more common to use more time.

Although Meizu does not have the strong resources for communication basic patents, it does not rely on Qualcomm chips. Therefore, the bottom line of fair and reasonable non-discrimination caused by the black box mechanism is relatively high.

Currently, there are still important mobile phone brands with game chips, and basically only Meizu, OPPO, and VIVO are left.

Today, because of the active contact between the brand and Qualcomm, it should be said that Qualcomm has already explored the bottom line of the brand.

......

3, the bottom line of justice

The attitude of the administrative system represented by the National Development and Reform Commission, but he cannot solve the problem of the judicial system. Therefore, the final step in a series of bottom-up moves is the Chinese judicial system.

In order to explore the Chinese judicial system, a series of lawsuits are needed to establish the precedent. The Meizu people who have doubts about the black box mechanism have doubts about the charges of Qualcomm's entire machine, and are therefore the first to be sued.

The purpose of this lawsuit is not to let Meizu pay as much money as possible. The real bottom line of China's judicial system for standard-essential patents is in line with Qualcomm's logic of action over a longer period of time.

Industry rumors that Qualcomm prepared this suit for seven months, that is to say, unless Meizu rapidly accept Qualcomm's all-encompassing provisions, the negotiations will inevitably break down and litigation must take place.

......

4. The last words

It should be said that Qualcomm’s government public relations, legal methods, and negotiation skills are very skillful.

All this, in fact, is the process of playing a game between the holders of standard essential patents and the entire Chinese administration, judicature, and industry.

Therefore, it is really stupid to report that the current tangle of patent fees should not be paid. Meizu and any mobile phone brand will not refuse to pay royalties. The real question is how much should be paid.

The real purpose of Qualcomm is to use a series of actions to detect the bottom line of the executive, the judiciary, and the industry, thereby obtaining the highest profitability. Under the condition that the average gross profit rate of Chinese mobile phones is very low (about 10% or even loss), Qualcomm has maintained a gross margin of over 50% (" Qualcomm sued Meizu behind: Nuggets 400 billion from China in 10 years" ) . (Conversely, Meizu is in fact within the scope of the law and the rules of the game, playing games for its own interests.)

It should be said that this strategy has been very successful so far. Personally, this way of using administrative public relations, negotiating skills, and judicial litigation to maximize the benefits that core technologies can obtain is understandable. I'm even admired.

However, public opinion and the media need to understand this matter correctly and avoid moral kidnappings (the use of renegotiation of standard-essential patents is not what Qualcomm wants to receive. It is not the same as proprietary patents. Please do it yourself. ) Enough game space. Meizu should also strive for its own interests through games in the scope permitted by laws and rules of the game.

Qualcomm's strategy can continue to be successful, and now depends on the final results of the tripartite game between the judiciary, industry and Qualcomm.

Related news: "Meishol implied Qualcomm's "black box operation", saying that it is not equal negotiation! 》

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