close
5G

The listing was immediately sued by Huawei. How can the sound-controlling holding of only 630 patents stabilize the “king of Africa”?

uk7cah4t8ierdglv.png

Editor’s note: This article comes from interface technology, author Lin Teng, 36氪 authorized to release.The company’s listing is on the verge of being listed, but it has encountered a roadblock in patents and copyrights.Recently, the interface news exclusive obtained a notice of acceptance of the case of Shenzhen Intermediate People’s Court: September 23, Huawei v. Shenzhen Voice Holdings Co., Ltd., Shenzhen Chuanyin Manufacturing Co., Ltd., Shenzhen Taihengnuo Technology Co., Ltd., HuizhouThe case of copyright ownership and infringement disputes of Aifutuo Technology Co., Ltd., Shenzhen Zhixun Ketuo Technology Co., Ltd. and Chongqing Chuanyin Technology Co., Ltd. has been filed.”Huawei’s prosecution of the content of the radio is not particularly important infringement, and the amount of the claim is not large, but it is considered to be a slap in the face of Huawei’s patents on the sound of the patent.” A person familiar with the case told the interface journalist.Huawei responded to the interface news: I will not respond to this matter.According to public information, Voice Holdings is mainly engaged in the design, R&D, production, sales and brand operation of smart terminals with mobile phones as the core. The main products are TECNO, itel and Infinix mobile phones. All products are sold overseas, and the sales area is mainlyFocused on global emerging market countries such as Africa, South Asia, Southeast Asia, the Middle East and South America.The company has made a name for itself in the past two years, mainly thanks to the resounding title of the outside world – the “king of Africa” ​​in the field of mobile phones.According to the prospectus, the company’s operating income in the first half of 2019 reached 10.504 billion yuan, of which the market share in Africa reached 48.71%.In addition, the company is about to land on the hottest science board, which also makes the capital market and investors pay close attention.On September 27, the announcement issued by the Shanghai Stock Exchange stated that Shenzhen Audio Holdings Co., Ltd. A shares will be listed and traded on the board of the firm, and will be listed and traded on September 30, 2019.The stock is referred to as “voice holding” and the stock code is “688036”.At the key points of the upcoming market, the technology of sound transmission and the weak patents have once again become the focus, which is the biggest uncertainty of the company for a long time.This time, a paper complaint from Huawei is likely to officially open the unfavorable battle for the patent.According to the prospectus, Chuan Yin and its subsidiaries have obtained 630 patents owned by the State Intellectual Property Office in China, including 97 invention patents, 385 utility model patents and 148 design patents.In terms of copyright, Voice Holdings and its holding subsidiaries have 286 computer software copyrights and 69 core software copyrights related to production and operation.Compared with competitors in the industry, the accumulation of technology and patents can be said to be far apart.Take Huawei Technologies Co., Ltd. as an example, the number of patents has reached 100,000.According to OPPO data, as of September 11, 2019, OPPO’s global patent applications exceeded 38,000+, and the number of licenses exceeded 12,000+.The number of patents of Vivo Communications Co., Ltd., the company in which it is located, has reached 10,000+.In the internationalization of mobile phone companies, patents are considered to be more important than the products themselves. Many companies have encountered patent problems in the internationalization journey.In December 2014, the Delhi High Court of India ruled that Xiaomi infringed Ericsson’s standard core patent portfolio (SEP) and issued a ban on Xiaomi to stop selling and importing mobile phones in India.In 2018, Cool Group sued Xiaomi Company for infringing its patent rights and involved more than 200 invention patents.The most typical mobile phone company in the patent defeat is HTC.In March 2010, Apple filed a lawsuit against the HTC Android system in Delaware and ITC for infringement of its patents. By 2012, HTC paid a huge price to solve it.It is widely believed that this patent war is the node where HTC is heading for recession.Li Junhui, a special researcher at the China University of Political Science and Law’s Intellectual Property Research Center, told the interface journalist that if the voice only sells feature phones in the African market, the patent issue should be good, because many 2G patents have expired and become public technology, no need to pay, if you enterIn the field of smartphones, the risk will become bigger and bigger.Africa, as the blue ocean market in the mobile phone field, is still in its infancy.Therefore, the function machine becomes the main model of the user.But with the start of smartphones, including 3G, 4G and 5G, the technology and patents involved will become more and more.Voice Holdings also mentioned in the prospectus that the proportion of smartphones has increased: “From January to June 2019, the company’s smartphone sales were 16.57 million units and feature phone sales were 38.15 million units. Smartphone sales and salesThe amount and proportion are rising.””The higher the proportion of smartphones, the greater the risk, and the potential for patent fees to be paid, especially the probability of encountering some NPE (non-patented entities) patent encirclement,” Li Junhui said.According to the standards of the mobile phone industry, if you only pay the patent fee to Qualcomm, the cost is about 3.25% of the whole machine. If you add other manufacturers that may charge the patent fee, the cost of the patent for each mobile phone is about 8%-10%.about.The voice has also mentioned the financial risks brought by the patent issue in the prospectus.At the end of June 2019, the end of 2018 and the end of 2017, the estimated liabilities of the company’s financial statements were RMB 871 million, RMB 745 million and RMB 535 million, respectively, including after-sales premiums and royalties.According to the report, the patent royalties are owned by the company’s own-brand mobile phones. There may be unauthorized use of third-party standard patents, which may be accrued according to the amount that may be paid in the future.As the company needs significant accounting estimates and judgments in anticipating after-sales premiums and royalties, the estimated amount has a significant impact on operating results.Not only Huawei’s lawsuit, on the eve of the listing, the CSRC has paid attention to the issue of whether the core technology and the existing R&D system of the company have continuous innovation capability, and also conducted key inquiries.Li Junhui said that in this case, the typical situation is neither the power of parry nor the power to fight back. It is to wait for the indictment and negotiate settlement between the two sides.Because it specializes in emerging low-end users such as Africa, South Asia, Southeast Asia, the Middle East and South America, the sound has been detached from the relatively blank edge market.With the saturation of the global mobile phone market, major companies will also fall into these markets, which means that the voice can not be partial, and the title of “King of Africa” ​​will also face greater challenges.In the second quarter of 2019, China’s smartphone market shipped approximately 97.9 million units, down 6.1% year-on-year.In the first half of 2019, the total shipments were about 180 million units, down 5.4% from the same period last year.Manufacturers represented by Huawei and Xiaomi gradually increased their efforts in exploring emerging markets by setting up regional departments and formulating relevant plans.Huawei recently launched the online platform “Huawei Mall” in South Africa and other places to further increase market promotion.Xiaomi established the African Region in January 2019 and cooperated with the African e-commerce platform Jumia to sell online products.The Indian market is more competitive.Samsung, Xiaomi and other manufacturers continue to increase investment in the R&D and marketing of the Indian market; Indian local manufacturer lyf relies on the advantages of the local operator field to launch ultra-low-cost functional machine services with bound traffic in the functional machine field.Manufacturers have a certain impact.The risk of the prospectus of the company is said that with the further saturation of the mature market in the future, it is not excluded that other mobile phone manufacturers will enter and increase the development of emerging markets such as Africa and India, and the market competition risk faced by the company will be increasingly intensified.In the process of competing for the competition, patents will be one of the most critical “weapons” in the competition.Li Junhui said that if the voice is the main low-end mobile phone in Africa, the role of technology in competition is limited. However, if you want to slowly increase the proportion of smart phones, you need to increase the investment in technology, including self-developed technology and appropriate patent acquisitions..According to the prospectus, during the reporting period, the annual R&D amount of Voice Holdings increased year by year, and the R&D investment exceeded RMB 2 billion during the reporting period.With the expansion of the scale of the sound holding business, future R&D investment will be further improved.In addition, the voice is patented from other companies.According to the prospectus, the company obtained a total of 94 patents for the transfer of Huawei Technologies Co., Ltd., Yulong Computer Communication Technology (Shenzhen) Co., Ltd., Xi’an Coolpad Software Technology Co., Ltd. and Dongguan Yulong Communication Technology Co., Ltd.It has been used and applied to company products, but due to the short time, the current revenue contribution is small..