Reinventing the Millennium

"WLS has launched a 4G baseband chip, which is extremely surprising."

"Although we are no strangers to the name WLS. When it was still owned by Infineon, it once occupied 18% of the global baseband market share in 2008. However, after it was sold, the market share continued to languish. As of In October this year, less than 5% remained, still dominated by the mid- to low-end.”

"For this former Infineon wireless communication solutions business unit, the industry has rated the buyer and seller. Infineon, which has shed its burden, can get an S, while the buyer, mainly Yike, can only get an S. To the disappointing C.”

"We understand what Yike, Samsung, and Apple want to do, but when Yike and Apple are equipped with Qualcomm chips, Samsung, which subsequently withdrew, seems to be more interested in opposing Qualcomm's injustice, and it chose to join forces with Intel , use the actual actions of the flagship machine to maintain progress."

"But the launch at the end of October changed everything."

"A number of mobile phone evaluation agencies have compared the flagship models of Yike, Apple, and Samsung. In particular, the network speed involved in the baseband chip has been repeatedly verified, and an answer has been generally recognized."

"According to tests in multiple regions of the United States and Canada, under the same LTE network, the actual download speed of Mars is about 10.4MB, that of iPhone is about 11.6MB, and that of Trump is about 9.5MB."

"In terms of hardware, based on Qualcomm's MDM9615M baseband chip, it supports a maximum theoretical speed of 100Mbps, which translates into an actual download speed of 12.5MB."

"That is, the performance of Zhurong 04S is about 90% of Qualcomm's baseband, and the Intel baseband used by Samsung is about 82% of Qualcomm's."

"Qualcomm's baseband products are a model in the industry. Although Yike has made breakthroughs in this area, it still lags behind in terms of data. As for Intel... it should probably withdraw from this field as soon as possible."

"However, the difference in network speed caused by the chip does not greatly affect consumers' choices. We have noticed that people tend to weigh issues such as full screen, photography, and price."

"Qualcomm has launched a lawsuit against Yike. It has not taken any action against WLS yet, but after China's regulatory authorities and Apple, Intel seems to be ready to take action."

"We have not seen Yike and Fang Zhuo's statements on this matter. We can only know from Cook's mouth that he is by no means inactive."

"Qualcomm has been sued repeatedly by different manufacturers in the past ten years, and this is not without reason."

"We're not sure yet whether this will be a turning point in Qualcomm's development, because the war hasn't really started yet."

The latest issue of the Wall Street Journal features the dispute between Yike and Qualcomm on the cover. The two companies are on the left and right. Yike on the left has vague logos of Apple, Hon Hai, Wistron and other companies, and there are three in the middle. The blacked-out word "Go! Go! Go!".

Many domestic portals reprinted this report. Penguin translated the title as "Fuck it! Fuck it! Fuck it!" and then changed the translation after realizing something and re-translated it to "Sue it! Sue it!" Sue it!".

Qualcomm filed a patent lawsuit against Yike, but Yike has never been a kind person. According to the overt and covert opinions of many media, Mr. Fang should have immediately launched a countersuit on the first day he was sued...

Thinking about it this way, maybe Qualcomm's patent is too powerful.

So, whether to sue or not...

In fact, Fang Zhuo himself and Yike have not completely decided internally.

On November 8, he put the "Wall Street Journal" from the previous two days on the table at a special meeting: "The outside world seems to be more anxious than us. Are we going to go or not?"

"This is because Qualcomm is acting too domineeringly. Regardless of Nokia, Samsung, Intel, or Apple, including us, they have all suffered losses from it." Yu Hong attended the meeting. "The question now is, how many companies are willing to truly stand up for themselves?" After all, no matter what, Qualcomm’s own standard essential patents cannot be bypassed.”

Fang Zhuo nodded slightly. This is a problem. Although Yike has developed, purchased, and mutually licensed patents, even if it really reconciles with Qualcomm, it still needs to make up part of the technology licensing fee.

This is true for Yike, which is developing rapidly and laying out its plans in advance, not to mention other companies.

"Mr. Fang, Qualcomm's patent litigation will only be a bargaining tool. It has no reason to really seek to ban the sale of our products on the market." American Vice President Schroeder attended the meeting online and expressed his views.

"One of the problems now is that many people also think that domestic antitrust investigations, communication with Apple, and WLS chips are also bargaining tools between us and Qualcomm." European President Pan Ben was also online, "This is still relatively subtle. of."

Normally, this is a dispute between Yike and Qualcomm. It is common sense to negotiate with each other. However, Qualcomm has offended too many companies in the past and the situation was too ugly. Only Apple has clearly stood up because it urgently wants to end it. A situation that is being checked and balanced by Qualcomm.

When Apple first released the iPhone in 2007, it used the baseband provided by Samsung, which was also from Infineon. However, due to poor performance, it had to switch to Qualcomm.

However, Qualcomm’s contract with Apple clarifies the conditions for exclusive supply.

In recent years, especially since Cook took office, Apple has been adding suppliers to strengthen competition among them and drive down the cost of parts. The number of suppliers has increased from 150 to about 360.

However, Qualcomm not only supplies it exclusively, but also patents both, which puts Apple at a loss.

Fang Zhuo still nodded, and then looked at Matthews, the vice president of the legal department. Professional advice was still needed to handle this matter.

If you don’t make a counterclaim, you can negotiate the price. If you make a counterclaim, you can still negotiate the price. As for... is there any deeper strategic goal...

"Mr. Fang, I support initiating an antitrust lawsuit against Qualcomm in California." Matthews did not attend the meeting online. He flew from New York specifically this time and just arrived in Shanghai yesterday. He unexpectedly made it clear attitude, "In the past few years, Nokia in Europe and Broadcom in the United States, these lawsuits have been close to success, but in the end they all ended in settlements or fines. As you and Cook said, we have the ability to push forward A situation that works in our favor.”

Qualcomm has already had similar cases in two major markets, and this month it just added an antitrust investigation in this important market in China.

"No matter how it is defined, Qualcomm has essentially formed a 'patent hijacking', violated the FRAND principle, and has the basis to launch a siege in the industry." Matthews talked about the second point.

The so-called patent hijacking is when technology holders ask for exorbitant prices for patents that are included in standards to obtain license fees that exceed their patented technology contributions.

"On the other hand, if Qualcomm wants to prove our 'patent reverse hijacking', it will be difficult because we are already prepared." This is not the first time Matthews has discussed this with Mr. Fang. He has been brewing with Mr. Fang since the baseband breakthrough. Qualcomm battle.

He added: "Patent hijacking is relatively common in the industry. Although reverse hijacking exists, it is not yet recognized."

"The most important thing is that there is a bit of discussion in the United States now about the scope of application of the Exhaustion Doctrine or the First Sale Doctrine." Matthews said seriously, "We have a chance We will strive to make Qualcomm’s clauses applicable after multiple rounds of litigation.”

The principle of exhaustion of rights or the principle of first sale means that once a patented product or a product directly obtained based on a patented method is legally sold, the patentee and its legal licensors lose the right to use and resell the product. Control.

To put it simply, Qualcomm has already sold the baseband chips to manufacturers, so it should not use the patents contained in the baseband to make secondary charges.

"The problem now is that this point is quite controversial. Not only the United States, but also many countries have protection for their own technological development." Matthews said, "Even the international standard TRIPS agreement, it is in Article 28 The article also avoids issues such as 'international exhaustion' in the exhaustion of patent rights."

He left the company's bosses time to digest, and said with great enthusiasm: "We definitely have the opportunity to help confirm the two principles of 'absolute exhaustion' and 'international exhaustion' of patent rights by initiating an antitrust lawsuit against Qualcomm. Applicable in the United States.”

Fang Zhuo was silent.

Yu Hong asked at this time: "Matthews, I understand your goal, but this sounds like a repeated pull."

The U.S. side is a precedent. If Qualcomm is targeted, subsequent similar cases will most likely refer to Yike v. Qualcomm.

"The market is evolving, and Qualcomm's past actions have given the industry a broad basis for counterattack. Perhaps what we have to do now is just a clear statement." Matthews actively lobbied, "If we can go to the Supreme Court, If we can unite more companies, I will be more confident about it.”

He waited for a while to see the big boss but said nothing, and said slightly slyly: "Anyway, we can also suspend payment during the litigation. The more you pull, the more it will have little impact on us, but if we pull more companies, Qualcomm will There will be pressure on all levels.”

Qualcomm has two businesses: selling chips and collecting patent licensing fees.

Once the latter is suspended, competition in the chip field itself will become fierce, and its single business will be magnified into a shortcoming.

Fang Zhuo nodded slightly when he heard this, and what immediately came to mind was Qualcomm's equity structure. Now Jacob has taken over the position of head from his father, but he only holds about 0.13% of the company's shares. .

There is competition between companies on both sides, competition in R\u0026D, competition in litigation, and competition in the industry. But at the same time, what cannot be ignored is competition between people.

Fang Zhuo thought about the clear opinion of the Vice President of Legal Affairs and asked everyone to take a look at the documents submitted by the Legal Department. What was listed in it was Qualcomm's substantial monopoly behavior.

Like Apple, Qualcomm’s exclusive supply and second-tier charges need not be described in detail. Like Intel, even if Intel is willing to pay patent fees, Qualcomm still refuses to license standard essential patents to this important competitor on reasonable terms.

In principle, this is something that is relatively easy to determine, but the boundaries of the principle are always being pulled repeatedly, and it always requires hard work.

"WLS's 4G chip cannot be used in flagship models. It is just a mid- to low-end baseband chip. There is no problem in using it on Kesheng machines."

"But as early as the second quarter of next year, WLS will be able to launch a baseband chip that can be installed on flagship tablets. It will inevitably be sued by Qualcomm."

Fang Zhuo rubbed the document with his fingers.

Schroeder said at this time: "We negotiate with Qualcomm in accordance with the FRAND principle, which also requires a reasonable price. However, if Qualcomm directly accepts it, the negotiation will be ended quickly."

"Well, that's easy. We can put forward a condition that is reasonable but will never be accepted. What we think is reasonable is that if you buy a baseband chip, you don't need additional authorization." Fang Zhuo said with a smile, "We have our own chips, and we will gradually Reduce dependence on Qualcomm, but this is definitely a bad start for Qualcomm’s deal and cannot be accepted by it.”

Building is hard, but destroying is definitely easy.

Fang Zhuo knows this well.

Schroeder nodded. Judging from the current situation, in fact, the conditions are relatively good in all aspects. We just want to see what other people will do.

"I will talk to Cook again, but not only Apple, but our manufacturers are not so willing to pay this patent fee. Hon Hai, Wistron, and Luxshare will definitely be able to pay it." Fang Zhuo He said slowly, "Intel has been bullied by Qualcomm quite badly. If it is willing to come out, then we..."

He still didn't say it to death, but the meaning was expressed.

If the foundation of the industry is really sufficient, it's not that Yike can't come forward to take the lead.

How to prove that the foundation is sufficient?

At least speak out like Cook did.

Fang Zhuo grabbed the documents from the Legal Department, looked at everyone's serious expressions, and said with a smile: "It's okay, no matter how we solve it, this will take a while. Qualcomm doesn't really want us to die, but we can really want to Let Qualcomm die and it will be easy to advance and retreat."

At the end of the meeting, the situation was basically clear.

Fang Zhuo had another small meeting with Matthews, then turned back to the office and called Cook directly to exchange views on Qualcomm matters again.

In this exchange, Apple has already made new moves in the United States. It is actively communicating with mobile phone union organizations such as the Mobile Application Industry Association and the Computer and Communications Industry Association, hoping to gain the support of greater public opinion against Qualcomm.

"Qualcomm's approach obviously goes against the normal patent licensing model, and they are willing to join us in condemning Qualcomm's monopolistic behavior." Cook said seriously.

The reason why Yike took the lead in this matter is that Qualcomm has initiated a lawsuit, and because WLS is operated by Yike, and I have to admit that Mr. Fang is still very prestigious and appealing.

"Well, maybe we should talk to Intel again, they have a very good influence." Fang Zhuo made a new suggestion.

"Intel and I talked on the phone. They will probably come to Shanghai to visit you in person soon." The enthusiastic Cook replied.

Fang Zhuo: "Well..."

They really want Qualcomm to die.

Looking at it this way, it's not Yike who wants to attack me, but my friends in the industry who want to support me.

"Okay, then wait until I finish talking to Intel." Fang Zhuo said.

The call was about to end. Cook hesitated and asked a question: "iPhone 5C, Mr. Fang, do you really think it is suitable?"

"How could it be inappropriate?" Fang Zhuo asked in surprise, "We are all standing in the same trench against Qualcomm's hegemony. Am I still trying to hide it at this time?"

Cook ended the call. Well, Mr. Fang was lying.

Mr. Fang is a good person. He is as good as one size fits all.

Mr. Fang is so bad, he is so bad, but at a time like this, he still has to deal with the same problem.