Microsoft buys Nokia memory variables

On February 19, 2014, following Microsoft’s purchase of Nokia’s mobile phone business and some patent rights for US$7.2 billion in September 2013, the Taiwan’s anti-monopoly regulatory authority, the Taiwan Fair Trade Commission (FTC), passed the merger conditionally. The restrictions imposed include the requirement that Microsoft not make unreasonable pricing or discriminatory treatment when it licenses mobile device-related patents, nor does it interfere with mobile device manufacturers' freedom to choose mobile operating system rights in other ways.

Microsoft's acquisition of Nokia reached the final stage, leaving only China’s Ministry of Commerce without approval. According to the latest news, the Ministry of Commerce will give the final result in the near future. Prior to this, the industry’s controversy focused on the fact that after Nokia’s divestment of its mobile phone business, it would naturally embark on the road to profitability through patent licensing. On the other side, Microsoft may also set barriers through patents to develop its own mobile phone business. Recently, the agency that provides global antitrust information and analysis has issued a document saying that Microsoft and Nokia have submitted "relief measures" to the Chinese Ministry of Commerce. The purpose of this approach is to dispel the concerns of patent-authorized parties, especially large numbers of domestic mobile phone brands. But so far, the voice of “resistance” is still very strong, and mobile phone operators believe that the so-called “relief measures” are too general and do not effectively curb the birth of the new “patent monster”.

Thousand dollar true patent behind the secret door

March of this year is a spring of trouble, and the mobile phone industry is no exception. However, compared with the events that make people feel hurt, the news about mobile phones is good for consumers.

Not long ago, Xiaomi Technology introduced a true eight-core 5.5-inch screen smart phone red rice Note. Immediately afterwards, Huawei and Lenovo, which were not to be outdone, also introduced the "Glory 3X Play Edition" and "Gold Warrior s8" with similar prices. Just a few days ago, TCL's 778-yuan real eight-core big-screen machine “Mody Mee” announced its release. To this end, with the introduction of the first cool sender of the 1,000 Yuan eight-core God F1, most of the well-known domestic mobile phone makers have already put the price of the eight-core mobile phone into the 800 yuan range.

It is noteworthy that many consumers wonder why these cost-effective eight-core phones only support the version of China Mobile's 3G standard T D-SC DMA, and Unicom and Telecom's versions are temporarily unavailable. Is it because the number of mobile users is the largest, so are the vendors paying the most attention? Not at all.

According to a person in charge of a domestic mobile phone business, the key reason is that the TD version does not need to pay part of the patent fee to Qualcomm. This will bring the retail price to a minimum in the current cost of components and components. In other words, if we push the Unicom and Telecom versions, it will not be possible to form a price war of this scale. Manufacturers have to add the cost of patents to mobile phones, and consumers will eventually be affected.

On February 9 this year, China Mobile's China Union of Mobile Phones submitted a report to Qualcomm on allegedly discriminatory pricing and monopoly high prices, claiming that Qualcomm's alleged violations of standards-necessary patent rights should be undertaken in a fair and reasonable manner. And the principle of non-discrimination on the external license, the domestic communications equipment manufacturers charged much higher than the European and American companies' patent license rates.

Another patent-related event is happening in two other global IT giants: Microsoft and Nokia. Microsoft's acquisition of Nokia seems to be only a company-level merger, but it later contains patent concerns that make domestic mobile phone companies quite nervous.

Microsoft, Nokia Relief Measures Alleged to be too General

So far, Microsoft's acquisition of Nokia has not been completed. In the end, the Ministry of Commerce of China has not given the "release policy." It is generally believed in the industry that, unlike the simple corporate merger, the two giants are likely to “find” the patent after the transaction is completed.

Zhan Yan, a doctor of law at Peking University, explained the impact of Microsoft's acquisition of Nokia at the patent level. "Unlike the simple corporate merger, Microsoft only acquired the Nokia mobile phone business, but a large number of patents remain in Nokia." He pointed out that on the one hand, Microsoft "eats" the next Nokia, or in order to expand their share of WP mobile phones. Use patented core weapons. On the other hand, Nokia, after divesting the mobile phone business, does not need to cross-license other patents with other mobile phone vendors. It is very likely that patents will be profitable.

Although the Ministry of Commerce did not provide details in the review process, the participating experts generally believed that whether the two companies would influence the mobile phone manufacturers through unfair patents, especially the Chinese mobile phone companies, was the focus of the Ministry of Commerce.

According to the latest news, Microsoft and Nokia have submitted "remedy measures" to the Chinese Ministry of Commerce for these "concerns" -- Microsoft promises to focus only on de facto standard essential patents when there is patent infringement, and is not a good licensee. Seek a ban. Nokia, on the other hand, promised to license standard essential patents on the basis of FR AND (fair, reasonable, and non-discriminatory terms), and promised not to seek a ban on a well-meaning licensee.

"Taking Nokia's remedial measures as an example, there is no limit to the number." The above-mentioned head of the mobile phone business said that even if Nokia increased the patent fee many times, it was a reasonable adjustment under the FRA ND principle. This is not restricted.

The Ministry of Commerce did not give a final resolution

Mei Xinyu, a research fellow at the Ministry of Commerce, said that the current model of patent sales by Qualcomm has actually set an example to other patent giants. “For instance, its pricing standard is not based on the price of the chip itself. It is based on the overall size of the entire terminal. The price comes to sell. I use your Qualcomm chip in my cell phone, and my cell phone screen, shell, and camera will also have to pay you." He believes that Nokia, after divesting the cell phone business, actually wants to copy Qualcomm's model.

"Qualcomm's revenue from operations in China accounted for 49% of its operating revenue in 2013. Microsoft and Nokia also have a very high share of revenue from the Chinese market." Mei Xinyu believes that after this acquisition (fingered by Microsoft's acquisition of Nokia) was completed, According to the kind of operating mode that they want to take, the Chinese market will continue to increase its share of the total revenue of Microsoft and Nokia.

According to Xiao Jiangping, director of the competition law research center of Peking University and executive deputy secretary-general of the Chinese Economic Law Research Association, the current data shows that Nokia's patent group is second only to Qualcomm, and in addition, there are 5,761 non-essential patents.

At present, the Microsoft Nokia M&A case is in the final stage of the review of the Ministry of Commerce, and it is very likely that the results will be announced in the near future. However, there may still be variables in the middle. After all, the Ministry of Commerce did not complete the review within 180 days as required by law, and the declarer voluntarily withdrew the application and reported again. For example, public information shows that MediaTek Inc. has absorbed and merged with Cayman Morningstar Semiconductor. From the time of submitting the application to approval, it took more than one year. Glencore's approval of Xstrata's acquisition also took more than a year.