This month, Qualcomm revealed its licensing fees for 5G intellectual property rights to smartphone manufacturers. According to the company’s official statement, the royalty rates for 5G patent licenses are set at 2.275% for single-mode 5G devices and 3.25% for multi-mode (supporting 3G, 4G, and 5G) handsets. This means that, under this standard, each 5G smartphone sold during the 5G era could incur an average royalty fee of approximately $16.25.
In November, Ericsson submitted a groundbreaking 5G patent application titled "end-to-end," which represents a comprehensive integration of its numerous 5G innovations into a full network architecture. According to Stefan Parkvall, Ericsson’s chief researcher, this patent contains all the necessary components to build a complete 5G network. He emphasized that these inventions will have a significant impact on industries and society, enabling low latency and high performance for emerging applications such as the Internet of Things (IoT).
Clearly, Ericsson’s focus extends beyond just 5G smartphones—it targets the massive IoT market, which is expected to reach trillions of dollars in value in the coming years.
China's growing influence in the global tech landscape should not be underestimated. Unlike previous wireless technologies like 2G, 3G, and 4G, where China was more of a follower, it now plays a key role in shaping 5G standards. As Wang Lei from the State Intellectual Property Office noted, China has entered a rapid phase in 5G patent development. By January 2017, China had submitted the most 5G-related patent applications globally, with over 1,600 filings worldwide.
Huawei, one of China’s leading telecom companies, submitted 4,906 patent applications in 2016, ranking first among domestic applicants. According to Yang Chaobin, head of Huawei’s 5G product line, the company began investing heavily in 5G R&D as early as 2009, spending $600 million on research alone. Currently, Huawei has made significant progress in areas such as 5G network architecture, spectrum usage, air interface technology, and base station implementation. In 2018, the company planned to invest over 5 billion yuan in 5G productization.
Other Chinese firms, like ZTE, hold over 1,500 domestic and international patents, making them a major player in the industry. Datang Telecom also plays a central role in China’s IMT-2020 5G Promotion Group, contributing to various technical working groups and studies.
As Zhang Xinsheng, vice chairman of the China Communications Society, pointed out, “Unlike the gradual evolution seen in 2G, 3G, and 4G, 5G core technologies are largely new. Whoever controls the patents and international standards will have a voice in the 5G era.†He urged Chinese companies to seize this opportunity and secure their place in the future of wireless communication.
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