International giants fight patents and fight for the right to speak in the Internet of Things market

No one doubts that after the computer and the Internet, a wave of Internet of Things is about to sweep the world.

More and more smart devices are being interconnected. In the next few years, the number of sensors, appliances and machines connected to the Internet of Things will exceed that of mobile phones. It is estimated that by 2021, there will be nearly 16 billion IoT devices in the world, covering all areas of automotive, home, health, urban management, industry, commerce, agriculture and even human society.

According to Forrester, a US research institute, the industrial value brought by the Internet of Things will be 30 times larger than the Internet, creating the next trillion-yuan information industry opportunity.

This is both a feast and a reshuffle. It will create an incomparably huge emerging market and will reshape the entire IT industry. Whether it is the rise of new champions or the upper floors of traditional giants, they must embrace the Internet of Things to take the lead in the times.

The staking of traditional IT giants has begun.

1. Starting from mid-September, a name called Avanci is constantly being screened in the industry.

Avanci is a patent licensing platform that has just been announced. Its mode of operation is to sign a patent license agreement with a number of technology companies to obtain patent sub-licensing rights in specific product areas, while patent implementers have signed an agreement with Avanci to achieve a fair and reasonable non-discriminatory fixed rate of 33. Obtain all patent licenses from Avanci agents.

Simply put, this is a patent pool that uniformly packages patents of multiple companies. Through it, companies only need to pay a fee, they can obtain patent licenses of multiple companies at the same time.

In many industries, this has long been a mature model, avoiding a large number of duplicate patent licenses and accelerating the development of the industry.

According to reports, Avanci will expand the licensing market for wireless technology patents (including 2G/3G/4G standard essential patents) in the smart car and smart meter markets, and will gradually extend to other IOT fields such as smart homes. In terms of licensing rates, Avanci claims that it will provide a flat rate that is consistent, fair, reasonable and non-discriminatory, and that is not currently announced.

Avanci was founded by Kasim Alfalahi, former Chief Intellectual Property Officer (CIPO) of Ericsson. Previously, under his leadership, Ericsson's annual net income from patent licenses increased from a negative value (patent license revenue is less than expenditure) to $1.7 billion in 2015.

Compared with him, Avanci is more concerned about the giants behind it.

It is understood that Avanci's sponsors include Sweden Ericsson, Qualcomm, China ZTE, InterDigital, and KPN of the Netherlands. In addition, Sony Japan has officially announced its participation in the platform on September 16.

They are all traditional IT amnes that have entered the Internet of Things.

For example, Qualcomm, as the world's largest communication chip design company, has invested more than US$40 billion in research and development over the past 30 years, and has more than 13,000 patents. The cumulative chip shipments are close to 10 billion, and Qualcomm technology IoT terminals are used. The volume has also exceeded 1 billion units.

Recently, there is news that Qualcomm may acquire another chip giant, NXP, for more than 30 billion US dollars, in order to comprehensively enhance the strengths in the fields of sensors, connectivity, computing and security, and hope to gain more in the field of Internet of Things. Great advantage.

For example, Ericsson, the leader in communications equipment, has applied for more than 35,000 2G, 3G, and 4G in various countries around the world, and has signed licensing agreements with almost all system equipment manufacturers and mainstream communication terminal manufacturers. In the past five years, Ericsson’s intellectual property license revenue has grown by more than 300%.

As the "China Power" in the Avanci platform, ZTE is also one of the most competitive technology companies in China. It has obtained the PCT international patent application volume for the sixth consecutive year and the PCT international patent first. It has 66,000 patent assets worldwide and has authorized 24,000 patents. Among them, in the new field of 4G and LTE standards, ZTE has More than 815 patents are required, accounting for 13% of the industry. . In 2016, ZTE was ranked third in the "China Enterprise Patent Awards" and the top in the ICT industry with 35 award-winning patents.

Prior to this, ZTE has invested heavily in the field of Internet of Things, and has perfect solutions and applications in the fields of industrial Internet, car networking, smart home and smart city, smart meter reading, etc., proposed in 2015 "M-ICT2. The 0" strategy is to provide an overall solution for the IoT IOT in the direction of embracing the Internet of Everything.

According to the latest Internet of Things patent report from consulting firm LexInnova, in 2013, ZTE’s IoT patent holdings ranked the top three in the world. The "British Intellectual Property Office" report shows that ZTE's IoT patent holdings ranked first in 2004-2013.

2. Teaming up to build Avanci as a platform, these giants use the advantages of patents to accelerate the cross-border shortcuts in the Internet of Things market.

Unlike the past IT ecosystem, the Internet of Things is a larger, more diversified market. The Internet is mainly connected to the virtual world, which is people and people; and the Internet of Things is mainly to open up the virtual world and the physical world, whether it is people and things, or things and things, they must be connected.

Therefore, these connections and services are dispersed in different vertical industries and under different scenarios. The demand for networks and equipment is different, technology fragmentation, service capability is fragmented, and industry barriers are obvious. Some need high bandwidth, some require low latency, some require low power consumption, some devices collect data to be processed in the cloud, and some directly process the fog through the access network.

This means that in theory, the Internet of Things, which connects all devices, is actually a myriad of virtual network combinations composed of countless different devices in countless different scenarios.

Therefore, the Internet of Things not only needs intelligent equipment, but also can never be separated from the network.

This also means that future IoT vendors will, like the mobile phone manufacturers in the past, urgently need technical support and patent licensing related to network communications.

This creates opportunities for the giants.

Standards and patents are the cornerstones of the technology industry. The number of patents is more or less important. It is not only related to the competitiveness of enterprises, but also determines the boundaries of interests of enterprises. The first-class enterprises make standards, the second-rate enterprises make brands, and the third-rate enterprises make products. It has become a business consensus in the technology industry.

In the traditional IT, communications and networking arena, the power of standards and patents has solidified. Even with the most human innovation technology, a mobile phone with more than 100,000 patents on one product, the patent research and development and authorization have already become the game field of all the giants, and the patent battle between the giants is more and more frequent.

But in the field of Internet of Things, the battle for standards and patents has just begun.

Regardless of the industrial Internet, the energy Internet, the Internet of Vehicles, or in more applications, the integration of the Internet of Things and the real economy can only be said to have just begun. Whether it is security, scalability, network connectivity, big data processing or more, it is still groping, and the related standards and ecology are still in chaos.

Even according to different application scenarios, the Internet of Things has further refined different standards such as NB-IoT for narrowband Internet of Things and LTE-V for Internet of Vehicles, but more standards still remain in R&D and gaming, and even earlier.

Just before the National Day holiday, Japan, the United States, and Germany announced on September 27 that they would work together to develop international unified specifications and technical standards for the Internet of Things (IoT).

Prior to this, the Open Interconnect Consorium (OIC) led by Intel and the Allseen Alliance led by Qualcomm, the two most influential and otherwise unchanging Internet of Things standards The organization also went to confluence in March of this year. A new Open ConnecTIvity FoundaTIon (OCF) replaced the previous OIC activities. The Allseen standard equipment is also compatible with the new OFC standard.

This is seen by the outside world as a strategic move by the two chip giants to temporarily suspend the dispute and jointly accelerate the layout of the Internet of Things.

Under such circumstances, Avanci packaged a patent pool for communication networks, making it easier for IoT companies to obtain network capabilities for devices, which will help the IoT industry to mature faster and help related giants occupy the Internet of Things. First opportunity.

It can be foreseen that as a watershed, the patent game will soon become a new focus of the Internet of Things industry.

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