On March 1, after the announcement of Huawei's patent infringement case against Xiaomi, it attracted wide attention from the outside world and rushed into hot search. According to the Announcement on the Acceptance of Administrative Judgments on Major Patent Infringement Disputes published in the 2nd edition of the National Intellectual Property Daily, Huawei has sued Xiaomi for four patent infringements, involving 4G/LTE technology, mobile phone photography and unlocking technology.

Subsequently, the two companies responded that they were actively negotiating on patent licensing. Xiaomi responded to the reporter that China's intellectual property protection system provides a diversified solution mechanism, including administrative and judicial mediation. It is industry practice to solve licensing issues through third-party mediation mechanism. Both Huawei and Xiaomi believe that intellectual property licensing and cooperation are conducive to promoting innovation and public interests, and that mediation is an effective channel to help achieve licensing. While continuing to actively negotiate, the two sides seek to use diversified mediation mechanisms to help the two sides reach an agreement.

According to the Announcement on Acceptance of Administrative Rulings on Major Patent Infringement Disputes published on the 2nd edition of the National Intellectual Property News, the China National Intellectual Property Administration accepted Huawei's lawsuit against Xiaomi's patent infringement on January 17.

From the content of the announcement, the four patents involved in the dispute are: "method and device for sending control signaling", "method for feedback ACK/NACK information during carrier aggregation", "base station and user equipment", "a method and terminal for obtaining panoramic images", "a screen locking method and mobile terminal".

Patent is an effective means in market competition. For a long time, Huawei has invested heavily in research and development and has become a large global patent reserve. For five consecutive years, the number of patent cooperation treaty (PCT) applications of Huawei ranked first in the world, with nearly 7000 in 2021, creating the highest PCT record. By the end of 2021, Huawei has held more than 45000 families (more than 110000) of valid authorized patents worldwide, of which more than 90% are invention patents.

In December last year, Fan Zhiyong, the head of Huawei's intellectual property department, said that after more than 20 years of continuous innovation, Huawei has formed a number of high-value patent packages worldwide, including 5G, Wi-Fi, audio and video. It is understood that Huawei currently owns about 10% of 4G patents worldwide, about 20% of 5G, Wi-Fi 6 and H.266 patents, about 30% of OTN and 10G PON patents, and about 20% of IETF patents.

Many patents cannot be obtained without Huawei's long-term R&D investment. It is reported that Huawei spent 845 billion yuan on research and development in the past ten years, 142.7 billion yuan in 2021, accounting for 22% of the annual revenue. It ranks the second in the world in the European Union's industrial research and development investment ranking, and 110 billion yuan in the first three quarters of 2022, more than the same period last year.

High R&D investment also needs high revenue as a guarantee, otherwise innovation will become passive water. Especially in recent years, Huawei has been under continuous pressure. In 2021, Huawei achieved a revenue of 636.8 billion, a sharp decline of 28.6%. Huawei is expected to have a revenue of 636.9 billion yuan in 2022, a slight increase compared with last year's revenue. However, in the face of difficulties, it needs more patent revenue "blood return".

Patents need to be licensed to realize the return on innovation, otherwise applying for patents will become an economic burden for enterprises. Behind Huawei's lawsuit against Xiaomi for patent infringement, Huawei is continuing to expand patent cross-licensing to obtain more patent revenue. Huawei has previously disclosed that from 2019 to 2021, Huawei obtained about 1.2 billion to 1.3 billion dollars of patent licensing revenue from the world. In December 2022, Huawei also successively signed patent cross-licensing agreements with OPPO, Samsung, Nokia and other manufacturers.

Fan Zhiyong said that mutual recognition of the value of intellectual property among enterprises can promote the positive cycle of innovation of "investment - return - reinvestment" in high-value standard technology research, improve the sustainable innovation ability of the industry, and provide more competitive products and services to consumers. According to Huawei's previous introduction, in 2022, about 350 million 5G mobile phones were licensed by Huawei, and nearly 10 major global smart car manufacturers were licensed by Huawei, and more than 15 million connected vehicles were licensed by Huawei.

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