A few days ago, the Huawei community announced Ren Zhengfei’s statement on Huawei 5G smartphone patent fees. According to the information released by Huawei, Ren Zhengfei said that we will build a reasonable price benchmark. He claims that this is necessary to allow the industry to use Huawei’s patents and technology fairly and reasonably. Of course, in return, the company will get appropriate R&D funds. Huawei claims that this will help the company to build an innovator image in the international community. Ren Zhengfei said
“If you use someone else’s patent, you have to pay a reasonable fee. This helps to establish an intellectual property value that is conducive to innovation all over the world”.
Patent fees cannot be charged for the sake of charging; they cannot be too low. If they are too low, innovation in the whole society will be in jeopardy. No one is willing to invest in research and development. Thus, most of the research and development funds come from patent fees. This is why Huawei retains a reasonable and non-discriminatory principle with respect to patents.
Huawei said that patent fees cannot be too high or too low, so how does Huawei actually do it? Huawei has previously disclosed the charging standards for 5G mobile phones. Huawei’s patent licensing fee for a single mobile phone that follows the 5G standard is capped at $2.5. In addition, a reasonable percentage rate applicable to the mobile phone’s selling price is provided.
Huawei charges way lower than others
Foreign companies have also announced 5G charging standards. The likes of Qualcomm charge 2.275% to 5% of the price of the phone for mobile phones using its 5G standard-essential patents. Swedish telecom giant, Ericsson charges $5 for high-end and $2.5 for low-end smartphones. Furthermore, there is also Nokia which charges up to 3 euros for each 5G phone that uses its patents.
Relative to other companies, Huawei’s 5G patent fees are the lowest among 5G core manufacturers. It is significantly much cheaper than Qualcomm, which is in line with Huawei’s attitude towards patent fees.
Huawei has been struggling in the smartphone market, managing to release relevant devices. The ban by the U.S. is crippling the company’s business but Huawei will not give up. According to the company, it is not competing in the smartphone market, it is only trying to survive. Nevertheless, when it comes to 5G core technology, Huawei remains one of the best in the world. Furthermore, the Chinese manufacturer is also the cheapest.