Why Chinese mobile phones are "the most injured"

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   “Microsoft acquired Nokia”On the one hand, it is expected that the dust will be settled in mid-April. Experts believe that the core of this merger is the dispute over patent fees. Mergers and acquisitions will inevitably have an important impact on the Chinese mobile phone industry in the licensing of patents and authorized users, and Chinese mobile phone operators will face high patent fees.

　　In mid-April, the highly anticipated "Microsoft M&A Nokia" case is about to announce the results, and has now entered the third phase of the review by the Ministry of Commerce. This is the first cross-border M&A case in the domestic mobile communications field.

　　In the smart phone era mergers and monopoly seminar held recently, industry experts said that based on the technology accumulation of Microsoft and Nokia companies in related fields, after the completion of the merger, it is bound to be patented and authorized by the world mobile phone industry, especially the Chinese mobile phone industry. Authorized users have an important impact on the sale and purchase. Chinese mobile phone manufacturers are likely to face high patent fees and profit margins will be further squeezed.

　　Ma Yide, vice president of the China Intellectual Property Law Research Association, told reporters that for a long time, Microsoft's high patent fees have had a significant impact on Chinese mobile phone manufacturers. Although the Android system is free, Microsoft's software is used in its system, so there is still a fee to pay. At present, Microsoft has levied patent license fees on Android manufacturers for about $5 each for smartphones and about $10 for tablets.

　　With the rapid growth of the Android smartphone market, Microsoft's patent fees will multiply and become a burden for many Android mobile phone companies, especially Chinese mobile phone manufacturers. It is expected that by 2017, Chinese companies will have to pay Microsoft at least $3.8 billion in patent license fees (including past sales).

　　Throughout the country, the average selling price of most domestic smartphones is less than $100. Taking China's mainstream Android mobile phone brands Huawei, Lenovo, TCL and ZTE as examples, in the third quarter of 2013, the average selling price of the above four mobile phone brand smartphones was only 103.25 US dollars. At the same time, the average profit margin of the above four mobile phone brands It is 1.70%. If Microsoft charges a patent fee of $5 per unit, it will take up more than 5% of the cost. As the price of mobile phones continues to fall, even if the cost of 5 dollars has remained unchanged, its proportion in cost will be higher and higher. It can be seen that Microsoft's high-value patent "pump" is draining the profits of Chinese mobile phone manufacturers.

　　Professor Jianzhong of China University of Political Science and Law said, "Microsoft has acquired Nokia, and China's mobile phone makers are the most injured." Whether it is Microsoft or Nokia, as long as the patent license fee is raised, it will make the mobile phone manufacturers with narrow profit margins even more difficult. In the situation, they can only choose to withdraw from the market or pass the cost on to smartphone consumers. The former will harm the market competition, while the latter will directly harm the interests of consumers."

　　In March 2014, Microsoft and Nokia submitted a revised relief plan to the Ministry of Commerce and began a critical negotiation on relief measures. If the current solution is passed, Microsoft's patent fees will not be reduced at least, and Nokia's patent fees will be greatly increased, which means that the patent fees after the merger will be far greater than the sum of the patent fees before the merger.

　　In other words, Microsoft "eats" Nokia, indicating that a patent-related war is about to come. The core of this acquisition is the dispute over patent fees. Experts suggest that in order to compete fairly with the Microsoft mobile phone business produced by domestic companies, Microsoft should no longer charge the relevant patent license fees, or should promise to reduce the patent license fee. Relevant Chinese authorities should also actively negotiate with Nokia to ensure that they promise not to charge more than the current level of patent license fees. If a patent is transferred to a patent investment company, the current patent license conditions should also be maintained. In order to prevent its abuse of patents and to jeopardize competition, it should undertake all patents related to its mobile terminal business. In addition, the Ministry of Commerce should adopt a more positive attitude than the United States and the European Union, such as seeking more cautious decisions by extending the time of review.