By the end of 2022, the number of 5G base stations will have reached 2.312 million, accounting for more than 60% of the world total, and the world's largest 5G network will have been built.
A report last year showed that China not only has the largest 5G network in the world, but is also a major power in 5G patents. Of the more than 210,000 basic patents for 5G standards filed worldwide, China's patents account for nearly 40% of the total, ranking first in the world.
Top 10 5G patent companies
The Chinese Academy of Information and Communication Technology recently published the "Global 5G Standard Essential Patents and Standard Proposal Research Report (2023)". Specific data shows that among the top 10 companies with an effective global patent family, Chinese companies rank 5, up 1 from last year.
Huawei topped the list, which is not surprising as it has a lot of 5G patents. Other Chinese companies on the list include ZTE, OPPO, Datang and Xiaomi at the very bottom of the list. And that's the point, this is the first time Xiaomi has made the list, making it into the top 10 companies.
The 5G standard
Standard-essential patents are derived from the English term SEP (Standards Essential Patents). Standard-essential patents refer to patents that are essential to the implementation of a standard and can be interpreted as patents that the implementation of a standard inevitably infringes. Standard-essential patents are mainly published by the European Telecommunications Standards Institute (ETSI), a non-profit telecommunications standards organisation and one of the three largest European standards organisations. It was approved by the European Telecommunications Committee in 1988.
Since the technology covered by the standard's basic patent is included in the standard, the implementer of the standard must use the technology to implement the standard and cannot avoid the standard's basic patent. If alternative technologies are used to circumvent the standard basic patents, then huge R&D costs are incurred and market acceptance of alternative technologies must be considered, which is not worthwhile overall.
Qualcomm, for example, holds a number of 4G/3G/2G core patents and can charge patent fees for smartphones worldwide. Based on mobile phone shipments in the Chinese market, Qualcomm is expected to collect tens of billions of dollars in patent fees from Chinese mobile phone manufacturers each year. Apple was also sued for patent infringement by Qualcomm and ended up paying extremely high settlement fees.
In the 5G era, Chinese companies are actively involved in developing standards and patents that are essential for standards. This report shows that Chinese companies continue to maintain their leading position.
Although Xiaomi's inclusion in the top 10 is surprising, it is a pity that although Huawei remains in first place, it is limited by basic products such as chips and has failed to launch 5G mobile phones in the last two years, and its market share of the mobile phone market has continued to decline.
