Chapter 393: Vertical and Horizontal

The situation of Coolwind is so special that it is even more dire than the situation faced by Google in the previous life.

In the previous life, although Google had the Android system, Google's own mobile phones basically had no market share, and there was no pressure on competitors such as Apple and Microsoft.

Therefore, in the previous life, Google acquired Nortel's "patent pool", and Apple participated in the auction, mainly because it did need these patents, and on the other hand, it was to weaken the influence of Andriod's entire system.

Because Microsoft does not directly collect royalties from Google's Andriod (because it is a free and open source license), but collects from mobile phone manufacturers in the Android camp, although it participates in the auction, the purpose is to ensure that it will not affect its own patent license fees.

In terms of vital interests, there is not much direct conflict between the two and Google itself.

But Cool Wind is different.

Cool Wind not only owns Android, but its Xphone is one of the most popular smartphone brands at present.

In this case, both Apple and Microsoft are faced with the fact that if Coolwind obtains these patents, it will be difficult to suppress the development of Coolwind at many levels in the future!

Needless to say, Apple, which was already its main competitor, can now try to curb the cool wind through patent litigation.

When the time comes, let alone use the patent stick to deal with Coolwind, if Coolwind gets these 6,000 patents from Nortel, who knows how many related patents will be involved in the Iphone?

At that point, it's Cool Wind wielding a patent stick at Apple!

And Microsoft, if Coolwind gets these patents, Microsoft will not only lose a lot of patent license fees from Xphone, but also a headache is that Coolwind is likely to share or license relevant patents with other manufacturers of the Android system.

Then, it is likely that Microsoft will not receive royalties from other Andriod system vendors......

At $10 for 1 phone, Coolwind now sells nearly 50 million Xphones a year, which is a net profit of $500 million a year.

And if it is extended to other manufacturers, such as Samsung, HTC, LG, Huawei and other companies, the total lost patent fees in that year will exceed $1 billion......

I can't bear this cliff!

Therefore, when the news that Coolwind and Google formed a group to acquire the assets of Nortel's network patent pool came out, the strongest reaction was Apple and Microsoft.

Some people may say that most of Microsoft's patents are related to Andriod's linux-based technology, while Nortel Networks' patents are in the field of mobile communications and 4G, and the two are not in conflict.

In fact, the patent war between international giants is not as simple as you have and I am.

The Internet has developed to the stage of mobile Internet, a large number of traditional patents and a large number of emerging technology patents have been generated, and many companies have their own patents in their hands.

Therefore, unless Microsoft does not do mobile business, it will also face patents related to Coolwind's possession and be sued for infringement by Coolwind......

The end result is usually cross-licensing and pooling of patented technologies, where the parties to the contract can use the intellectual property owned by the other party.

Such agreements often achieve the means of fixing prices, allocating markets and customers in an oligopoly situation.

The benefits for both parties are also clear: the two sides can integrate complementary technologies; reduce transaction costs; removal of mutually obstructive status; Avoid costly lawsuits. It is relatively easy for two companies with market power to reach a dynamic equilibrium in this way.

Of course, this must be within the framework of not violating antitrust laws.

In 2007, Microsoft and Samsung entered into a similar joint venture agreement for patented technology. In digital media and entertainment consumer electronics, Samsung has the advantage of covering a wide range of patents. It is a win-win measure for the two sides to make up for the shortcomings and communicate with each other through this cooperation.

Moreover, after having a large patent pool, there is a kind of "nuclear weapon" and confidence in many faces of competitors.

Another interesting joke is this: in the 80s of the last century, the then giant IBM once demanded patent fees from Sun Microsystems (which has now been acquired by Oracle), claiming that Sun infringed 7 of IBM's patents and demanded compensation.

However, after careful verification by Sun, it was found that six of the seven patents involved were likely invalid, and it was clear that Sun did not infringe the seventh patent mentioned by IBM.

But the result was very unexpected, IBM claimed: Maybe you really didn't infringe on the seven patents we just mentioned, but we have 10,000 patents in the United States, do you really want us to go back empty-handed and check again to see if you have infringed on our other patents?

In the end, after some bargaining, Sun Microsystems finally paid a large amount of "patent protection fees" to IBM. IBM, on the other hand, continued to go to other companies to collect protection money.

Therefore, if Coolwind does not have these patents of Nortel Network as a confidence, Android will face a similar problem given by Microsoft. Do you want to pay this protection fee?

Therefore, for Coolwind, no matter how high the price, these patents of Nortel Networks must be won!

This is the best chance the Cool can get.

Cool Wind is not Google after all......

Google fails, and can still go and buy Motorola, but what about Coolwind? After all, it is not an American company, Motorola, a traditional American technology giant, and Coolwind is absolutely impossible to acquire, and it is impossible for regulatory authorities such as the US court and the Department of ......Justice to approve it!

The same applies to Nokia.

However, there are not many targets in the world that have a large number of relevant mobile communication patents and can be acquired......

To put it mildly, this is the biggest opportunity and the biggest hurdle in the development of Coolwind.

If you can't get through, you can only retreat your business from the world, retract back to China, like Huawei, slowly accumulate strength, innovate and develop your own technology, apply for patents, and wait for many years to accumulate your own "patent pool" to the point where you can set sail again......

However, in that case, Coolwind will lose the opportunity for the rapid development of smartphones in recent years, and it will be thousands of times more difficult to regain the lost market share!

There is no room for loss in this battle!

…………

Therefore, Lin Feng also pressed all the resources!

From the network resources of the U.S. government such as Ao Guanhai, to the Wall Street banking consortium, law firms and other institutions that have been popular for many years (these institutions have a wider range of interests behind them), to other manufacturers in the OHA (open handset alliance) of the Andriod system.

Lin Feng began to fly back and forth between New York and Washington.

During this period, he continued to visit people from all walks of life.

It also spent a lot of money to hire a large number of lobbying firms to conduct public relations, the purpose of which is, on the one hand, to ensure that regulators, bankruptcy courts, the Department of Justice, and the Federal Trade Commission, the antitrust agency, can approve Coolwind's participation in the auction and approve the results.

On the other hand, it is also hoped that more partners can be pulled into the acquisition consortium that has joined forces with Google.

From the handling of the oracle bone inscription, Lin Feng deeply felt the true meaning of "making a lot of friends and a few enemies".

If you want to win the auction, on the one hand, you have more chips in your hands.

On the other hand, it is more important to reduce the chips in the opponent's hand!

Although Apple and Microsoft are big businesses, they are supergiants.

But after all, they are all listed companies, and they still need to explain to the board of directors and shareholders. If the cost of acquiring Nortel's patents is too high to outweigh the losses, perhaps they will retreat.

Of the $4.5 billion paid by the winning consortium that bid with Google for Nortel's network patents, Apple contributed $2.6 billion, RIM contributed $770 million, and Ericsson invested $340 million. Although the quota of Microsoft, Sony, EMC and other companies is not disclosed, it is also 1 billion US dollars if you simply calculate it.

According to their own needs, each company divided these patents and cross-authorized some core patents with each other.

Lin Feng feels that this method is very effective, on the one hand, it can reduce his own financial pressure, and on the other hand, if more companies are combined to bid together, the possibility of being approved by the US and Canadian governments and bankruptcy courts is also greatly increased.

Therefore, he set his sights on some manufacturers in the Andriod camp who also need these patents, such as HTC, Sony Ericsson, and Samsung (although Samsung has many patents of its own, 4G-related is still attractive).

In this way, through the combination of vertical and horizontal, and finally when it comes to bidding, the situation presented is already very different from that in the previous life!