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Millet India patent case to re-open next month Ericsson full rights?

January 13 2015

Millet India patent case to re-open next month Ericsson full rights?

Although millet has adopted "into court every phone prepay 100 India rupee" way to get a temporary ban, but millet is concerned, this patent fight has only just begun: Ericsson would never stop at the India market, on the contrary, India proceedings or just the beginning of Ericsson's millet full marketing rights.

21st century business Herald reporter read from the Delhi High Court, documents show, sued Ericsson on December 5, sued millet and infringed on December 8, the Delhi High Court decisions violated Ericsson, Remy 8 standards essential patents, issued and sold before the ban. Takes only 3 days, called swift. Germany Munich marks at the Max Planck Institute for intellectual property and competition law engage in intellectual property research of Wei Lizhou says: "these patents are standards essential patents, and almost all mobile phones around. ”

XiaoMi Smartphone In addition, Ericsson had "in India to prosecute millet" publishing events in the third statement said India has been set further hearing (Court) date set for February 5, 2015, has less than a month away.

Needs to be pointed out that is, in accordance with WIPO (World Intellectual Property Organization) of PCT applications (for high quality of international patent treaties) retrieval, Ericsson patents in the world's major powers have authorized, including China. Wei Lizhou said, "the same patents in different countries is a document, simply translated into different languages. Ericsson has 8 patents in China and India right is consistent. ”

He told the 21st century business Herald reporters: "India infringement is justified, in China as well. Not in China against, not for, not incapable. ”

Most profitable patent business

According to the results, Ericsson were applied 22830 PCT in WIPO, which landed in China on 3742, over United States, 3525 6495 items after the European Union. India, and Korea floor number is 1568, 1423.

Providing search results for 21st century business Herald reporter's well-known top patent consulting firm Wang Fan said: "to some extent, indicating Ericsson patent strategy in the Chinese market depth and importance than India market, China is also absolutely most important Ericsson market. ”
For many years, Ericsson invests more than $ 5 billion for technology research and development, thanks to this, Ericsson's intellectual property Department has become Ericsson's core profit-making sector.

2013 Ericsson Q4 earnings in 2013, Q4, Ericsson's revenue of 67 billion Sweden krone, net profit of 6.4 billion Sweden krone, 3.3 billion of which Sweden Krone profit from Samsung's patent licensing fees. Only a contribution to profit 51.5% per cent of total profit for the quarter. Samsung licensing fees totalling 4.2 billion Sweden kronor net profit of 3.3 billion Sweden Krone profit rate of up to 78%.

Although the licensing fees of the statistical methods used in the massive investment in research and development is not counted as costs, but also illustrating the remunerative of licensing fees. In 2013, Ericsson total 227.4 billion Sweden krone, a net profit of 12.2 billion Sweden krona. Among them, the patent license fee income of 10.6 billion Sweden krone, if all the calculated in accordance with 78% margins, Ericsson, half the profits from patents, is its most profitable business.

If the patent itself is seen as a commodity, that Ericsson is definitely the leader in the market of this product. Ericsson attaches importance to patents and to respect patents, and than most people know how to protect patents. Ericsson had said in an official response: "the current world's top ten mobile phone manufacturers, eight of ten years ago did not exist, their products are used by seniors have developed mature and have been incorporated into the standard technology. ”

Meanwhile, Ericsson said, "where did millet Ericsson patent violations, where we reserved the right to sue. "From Ericsson in India filed a complaint against millet started this game has gone into Ericsson's rhythm.

Millet is back to the negotiating table

Ericsson had in the United States sued Samsung, global settlement and forcing Samsung and Ericsson. The same case and ZTE, starting in 2011, Ericsson in the United Kingdom, and Italy, and Germany sued the ZTE. According to a Reuters report, ZTE global settlement with Ericsson in early 2012 and pay licensing fees to Ericsson. So far, both sides did not disclose the specific amount.

Wang Fan told the 21st century business Herald press: "Ericsson chose India patent proceedings against millet, the aim should also be to the millet of reconciliation on the negotiating table. "According to Ericsson's public statement that" in the past 3 years time, we tried with millet Corporation for their GSM, EDGE and UMTS/WCDMA standard of sincere dialogue between the product's patent licensing issues. However, millet have declined in a fair, reasonable and non-discriminatory (FRAND) principles on the basis of, and receives about Ericsson's IP licensing to respond in any way. Ericsson as a last resort, only to take legal action. ”
However, from now on, millet Ericsson cannot be ignored anymore.

Over three years, millet has become China's largest mobile phone maker, annual shipments of 61.12 million, income of $ 74.3 billion yuan. Ericsson has not instituted proceedings in China.

"In our country, the patent system short implementation time, and was not consistent throughout the trial rules. Therefore, the vast majority of companies are less optimistic about the domestic intellectual property protection of the environment, generally agreed that local protection is more serious. "Renowned patent attorney Zhongkui LI told the 21st century business Herald reporters," most of them thought suing Chinese companies find it difficult to win, even if the lawsuit succeeds will be hard to enforce, so very few international companies in China to lodge a complaint. ”

Wang Fan believes that "patent seems to be a technical problem, in fact, is a legal question, but in the end this is a business issue. "He said:" Ericsson directly sued the millet in China is not the best choice for business, on the one hand directly on millet's biggest market for patent litigation, inevitably provoke millet back without business to make room for compromise on the other, initiate patent litigation in China, Ericsson does not necessarily achieve satisfying results. ”

Prior to this, in 2010 for domestic mobile phone manufacturers Nokia and Shanghai huaqin 8 patent infringement proceedings. As of now, 4 of which patents are struck down, 1 against, the other 3 are still pending. In addition, Nokia also paid millions of dollars to lawyers and forensic costs tens of millions of Yuan. According to the statistics provided by the industry shows that in 2013, United States patent infringement cases on average each case fined $ 4.6 million, while China's patent infringement penalties averaging less than $ 20,000.

Moreover, in China against millet may also affect Ericsson's market strategy in China, after all, Ericsson, but China is the world's largest telecom equipment market, and is the peak of the 4G construction in China in recent years, "every move, there may be far-reaching. As a European company, caution is their tradition. ”

But now, Ericsson through India to prosecute millet, got off to a very good strategic position. Wang fan thinks, "Ericsson in this way communicate to millet ' Ericsson has the ability to protect their patents ', also fined millet has the ability to use legal channels. If Ericsson is now negotiating demands of the Chinese market to millet, millet has not rejected. ”
Strengthened patent protection for high voltage line

Millet, but need to watch is, China is strengthening the protection of intellectual property rights.

On January 4, 2015, the State intellectual property Office's official website issued a plan of action for the further implementation of the national intellectual property strategy (2014-2020).

China University intellectual property Center special researcher Li Junhui told the 21st century business Herald press: "the greatest impact is that the strengthening of intellectual property protection in the higher position. Innovation to promote economic restructuring and upgrading. ”

In fact, on July 11, 2014, Premier Li keqiang met with Director-General of the world intellectual property organization when Gao Rui points out: "intellectual property protection is to protect innovation, intellectual property can stimulate innovation, was to cheer the spark of innovation. "Subsequently, Li keqiang stressed again in September 2014, at the summer Davos Forum:" for serious acts of infringement of intellectual property rights and punished according to the law, including the introduction of huge damages to punish, an unbearable cost to offenders, and to promote innovation. ”

Change has begun. On January 5, 2015, the Chi group in Shanghai Beijing second intermediate people's Court ruling violated the Germany of Züblin company "Gao Tiesheng barrier technology patents", which is 8 million yuan of economic losses and compensation. Zhongkui LI said: "in addition, China has established 3 intellectual property Court, the fourth revision of the patent law is also under way, 3-5 years in the future, Chinese patent protecting the environment will be greatly improved, millet stronger pressure of patent disputes. ”

Of course, "Ericsson patent litigation means rather than their goals, Ericsson was not the odds are millet, whose wish is to get licensing fees. For millet, and this impact is their low prices, cheap model, does not compromise survival. "Wang Fan told 21st century business Herald reporter.

In addition, patent protection for millet, environmental improvements, is more good than harm. "National intellectual property strategic action plans have been proposed to reduce patent review cycle, from 22.3 down to 20.2 months, this is a very significant breakthrough. "Wang Fan told the 21st century business Herald reporter," in fact, Remy has applied for many patents for inventions, however, submitted a patent application 18 months after the General is not public, so you don't see it. Believe that after a period of time, millet, surge in the number of patents published. ” One2more

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