In the era of the Internet of Everything, the 5G technology as a basic support can be described as "hot" and has been highly concerned by all walks of life. Among them, the terminal is essential for 5G commercial use. Recently, various mobile phone manufacturers have announced breakthroughs in their 5G mobile phones. It is worth noting that in the purchase cost of 5G mobile phones, how much does 5G patent fees account for?
According to the latest research of Strategy Analytics (hereinafter referred to as SA), 5G mobile phones will bring nearly US$20 billion in global royalties to intellectual property (IP) holders each year. SA senior analyst Ville-Petteri Ukonaho said: “Total 5G patent fees will account for approximately 7% of the total wholesale price of 5G smartphones.†Strategy AnalyTIcs concluded that Qualcomm, Ericsson and Nokia will occupy these concessions. The vast majority of usage fees.
Qualcomm is currently the most widely used Android mobile phone chip. The 5G patent fee standard is divided into 4 situations: a mobile phone that only supports 5G networks will charge 2.275% of the patent fee; if 3G, 4G and 5G are used at the same time, 3.25% of the patent will be charged Fees; plus essential patents and non-standard essential patents, single-mode 5G mobile phones will be charged 4% of patent fees; multi-mode 5G mobile phones will be charged 5% of patent fees. Such a fee model is generally considered high in the industry. Senior analyst Ville-Petteri Ukonaho said: "Qualcomm will account for more than half of the total global 5G mobile phone usage fees in 2025."
In fact, at the earliest Qualcomm's patent license fee, the selling price of the whole machine was capped at $500. In 2017, Qualcomm lowered the sales price ceiling of the patent license fee from US$500 to US$400, and the highest patent fee charged for each mobile phone was lowered from US$16.25 to US$13.
But the market does not seem to buy it. In 2018, Apple and Qualcomm did not reach a settlement on the patent license fee, and even finally decided to abandon the Qualcomm modem chip in the 2018 iPhone.
Ericsson, Nokia: charge a fixed feeAs early as March 2017, Ericsson announced the charging standards for 5G patent fees. Ericsson’s 5G patent licensing fee for handheld devices is US$2 to US$5 each, depending on the price of the whole machine. It is worth noting that Ericsson's 5G patent license fees only cover standard-essential patents related to 5G, not application patents.
For 5G mobile phones, the licensing rate for Nokia's 5G SEP portfolio will be limited to 3 Euros (approximately US$3.5) per device. In addition to mobile phones, other types of equipment Nokia will determine their licensing rates separately.
Huawei, Samsung:Neither Huawei nor Samsung has announced the charging standards for patent license fees.
Earlier, it was reported that Huawei charged 4% of the patent fee for each 5G mobile phone. Huawei denied this, saying that it had never announced a fee plan. At the same time, Huawei said that “any single right holder’s fee of 4% is too high and unreasonable. Huawei will strictly abide by FRAND in its patent licensing activities. The principle is not to blackmail the industry and society, and advocate other rights holders who are committed to promoting the implementation of 5G technology to make the cumulative patent rate lower and more transparent than 4G."
Regarding Huawei and Samsung’s delay in publishing patent fees, Dong Xinrui, an intellectual property commercialization strategy expert, said: “Every company has its own strategic plan. Patent as a tool serves the company’s overall strategy. The main reason for the disclosure of patent fees. Secondly, Huawei and Samsung have not mastered 5G's core standard essential patents, and they are still in the stage of watching the fire from the shore. Standing in line in advance will have a bad impact on the market. Standard patents must be fair and reasonable And the principle of non-discrimination (FRAND). For this reason, Huawei and Samsung are also waiting to see the responses of manufacturers and public opinion, and make real-time adjustments later. "
"For Huawei, Western countries and even Russia are now holding out. It is possible that Huawei is seeking another form of cooperation rather than through patent licensing fees." Dong Xinrui added.
Li Junhui, a senior expert in the industry, believes that Huawei and Samsung have slightly different models compared with Qualcomm and Nokia.
Both Huawei and Samsung have mobile phone equipment business and are both 5G patent users and 5G patent licensors. The model of Nokia and Qualcomm is patent licensing revenue. They first announced the fee standard, also because it currently has a large number of license objects, and has the consideration of stabilizing the expectations of existing patent license objects. Huawei and Samsung still need some time to evaluate in this regard, so the release date will be relatively late. It is up to them to decide whether to publish it publicly or negotiate and sign agreements with the licensee one by one.
Is there really a difference in the charging standards?In fact, the key to 5G patents is the dispute over 5G standards. There is no necessary patent to become a 5G standard, and no amount of 5G patents are of great value.
Regarding Qualcomm’s “high†charges, Dong Xinrui said: “As far as 5G technology charges are concerned, the prices of Qualcomm, Ericsson and Nokia are not much different. Qualcomm’s “high†is mainly a package fee, 3G, 4G, 5G standard essential patents and non- Qualcomm has standard-essential patents. The 3G and 4G standards are in the hands of Qualcomm and have absolute monopoly. In addition, the non-standard-essential patents owned by Qualcomm can greatly reduce the patent litigation costs of mobile phone manufacturers. On the whole, fees are charged. There is no difference in standards. What is different is the difference in the service chain."
At the same time, Dong Xinrui emphasized that from the perspective of overall development, the greater value and significance of 5G technology is not in mobile phones, but in areas such as autonomous driving and the Internet of Things.
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