Reading: What happens when Millet is banned?

Wen/Blue whale TMT network Wang Jinxiao

If the great pressure of public opinion to compare Millet to Achilles, then the patent must be heel. November, ZTE, Huawei and other domestic manufacturers of Millet filed patent lawsuits, said Millet and other manufacturers violated its WCDMA patent. Domestic is not good, foreign also restless, December 11 morning, the Indian media reported that the Delhi High Court ruled that Millet violated Ericsson's patents, and issued a ban to prohibit the sale of millet in India and imports of mobile phones.

Clear legal provisions have not yet been made, but through Indian media reports, Ericsson is suing 8 patents on AMR, Edge and 3G technology, all of which are telecommunications.

What are the characteristics of this type of patent?

Extremely dispersed, and no single vendor can monopolize a patent. Earlier, ZTE denounced the infringement of millet patents for WCDMA, is only a part of 3G technology, and ZTE, Ericsson manufacturers have played a patent war. Ericsson sued ZTE in 2011, accusing it of violating its technology patents on WCDMA. ZTE also sued Ericsson in the same year, involving a number of patents related to Ericsson's core network, GSM and fourth-generation mobile communications systems. Therefore, in this aspect of the patent war is often impossible.

Why Millet?

Millet has a small number of patents. From the National Intellectual Property Office on the Web site, millet in the domestic invention authorized only 16 pieces, this small number of poor, and Ericsson up to 1323 pieces, not to mention overseas, therefore, millet in the patent is extremely vulnerable to.

Millet overseas market expansion faster. According to media reports, millet into India four months, sales of 500,000 units, India quickly become the second largest millet market, according to Canalys data show that the second quarter, millet in overseas shipments of nearly 2 million, so, for international manufacturers, Millet is a threat. Although Huawei, ZTE overseas market development than millet better, but the two companies have a large number of patents, patent licensing as high as 22169, 14,493, so, Ericsson and they play, it is not cheap, had to pick soft persimmon pinch.

Ericsson and Millet communication is not smooth. Ericsson said it had asked Millet to pay for these patents in July of this year, but Millet did not respond. There may be a communication problem between the two sides, or there is no agreement on the price of the patent, and finally Ericsson chose to sue Millet.

What is the chain reaction?

First, Millet is trapped in the patent mire. Whether domestic or foreign, patent litigation is bound to be a long process, if millet in India can not sell goods, the pace of overseas expansion of millet will be greatly affected. Millet in product development is bound to have scruples, over time, may affect the sales of millet.

Second, overseas manufacturers have followed suit, millet lawsuit ridden. This case is more symbolic than the actual significance, in fact, many manufacturers are likely to follow Ericsson, in different areas of the prosecution of millet, the ban on the local sale of millet, if this happens, Millet's overseas market prospects will not be optimistic. In fact, the relationship between millet and overseas manufacturers is not too good, Apple design director has criticized Millet.

Third, the valuation of the listing is affected. In the previous phase, it was said that Millet was to be listed, valued at 50 billion dollars, largely by virtue of its imagination in overseas markets. And once the overseas market is blocked, the imagination of millet is reduced, which will affect the valuation of millet.

Four, warn other manufacturers. Patent problem is the weakness of most domestic manufacturers, in addition to millet, cool faction, OPPO, Vivo, Gionee, the charm of the invention Authorization for 334, 103, 7, 7, 4 pieces, the lesson of millet let these enterprises recognize the hidden dangers in the patent, do not exclude future patents will become a hot spot.

Written in the last

Domestic market saturation, the performance of overseas markets determines whether the millet can continue to develop, for millet, the rapid completion of the short plate is the right path.