The most valuable thing in modern society is not the product, but the intellectual property rights extended by technology patents.
A company, even if it does not have a product, as long as it has an advanced technology patent with industry influence, can still live a very moist life by relying on licensing.
In the field of communications, the right to speak of technology patents and related industry standards is in the hands of Western countries led by the United States for many years, and Qualcomm, Ericsson, Nokia, etc. rely on existing or original patents to basically make a lot of money.
However, after entering the 5G era, the situation has changed fundamentally, and Huawei has become the company with the largest number of 5G patents in the world with an absolute number.
This is also the main reason why the United States will choose to sanction Huawei on the cusp of the upcoming 5G era.
What needs to be known is that although Huawei holds many technology patents, because the world has just entered 5G, Huawei does not have time or has not yet freed up time to deal with the issue of fees related to patent licensing and licensing.
However, since being sanctioned by the United States and the serious negative impact on various businesses, Huawei finally has time to sort out the patent problems.
On April 6, 2022, Huawei released the minutes of the "Patent Licensing Business Report" issued by Ren Zhengfei, which is the first time that Huawei has publicly stated its position on the price of 5G patent fees.
According to the minutes of the meeting, Huawei's 5G patent license fee is: 2.5 US dollars per unit.
What is huawei's 5G patent fee in the industry? It can only be said that it is quite conscientious.
Qualcomm's published charging standards show that: 5G mobile phones are charged 2.275% according to the price of the whole machine, mobile phones that use standard essential patents and support 3G/4G/5G are charged 3.25%, mobile phones that use standard essential patents + non-essential patents but only support 5G are charged 4% patent fees, and mobile phones that use standard essential patents + non-standard essential patents at the same time support 3G/4G/5G are charged 5% patent fees.
Qualcomm's full charge cap price is $400.
Since it has just entered 5G, the construction of communication infrastructure equipment has not yet been fully covered, so the smartphones released at this stage are compatible with 3G/4G networks on the basis of supporting 5G networks, which are suitable for the 3.25% rate given by Qualcomm, and the cap of $400 is that the fee charged by a single model is about $13.
Ericsson's rates are: $5 per high-end model and $2.50 per low-end model.
Nokia's charge is: 5G phones, $3.57 each.
Huawei's 5G patent charging standard is only a fraction of Qualcomm, lower than Nokia and Ericsson.
It can also be seen from here that the licensing fee of Qualcomm's technology patent is really outrageous, and it is no wonder that even Apple, which has amazing profits, can't stand it, so it will not hesitate to go to court.
As for why the patent fee is set at $2.50, Ren Zhengfei said that "Huawei's patent fee is not charged for the sake of charging, it cannot be too low, it is low, it will curb the innovation of the whole society, no one is willing to invest in research and development, nor can it be too high, too high is not conducive to the development of the industry."
Finally, according to the latest information, Huawei's 5G patent licensing fees are only applicable to overseas manufacturers led by Apple and Samsung at this stage, and huawei has no response as to whether domestic manufacturers charge for using patents.