Chapter 509: Explosive Profits, High Patent Royalties
Ren Fei felt that his time in Jiangzhou was the happiest and most relaxing time in the past few years.
First of all, he and Chen Xiao and other senior executives of Changtian Technology got along with each other without any pressure or discomfort, and they were very relaxed.
Secondly, the scientific research atmosphere and technological products created by Changtian Technology are also urgently needed by Warwick.
Now that the 3G communication test is successful, it means that Warwick is about to move to a higher platform to compete with Western technology companies.
Among them, the contribution of Changtian Technology is indispensable.
All joking aside, Ren Fei discussed in detail with Chen Xiao the licensing of 3G communication technology patents.
Previously, Changtian Technology and Warwick have applied for patents to relevant national departments and some overseas countries.
The process of patent application is very long, but according to the internationally accepted relevant patent laws, as long as your technology is successfully developed and has the corresponding supporting information, your related technology transfer will be obtained from the moment you plan to apply for a patent.
Protect.
Moreover, 3G technology is inherently a difficult patented technology in the field of communications. Even if others want to copy your technology, they will not be able to copy it.
Therefore, in terms of technology patents, Changtian Technology and Huawei are relatively safe.
Although the two parties do not discuss equity, business is still business and profit distribution still needs to be discussed.
For his own initiative, Ren Fei hopes that Changtian Technology can license 3G technology to Huawei at one time.
What Ren Fei means is to pay Changtian Technology a one-time payment of RMB 500 million in 3G technology patent royalties, and give Huawei priority to use the technology for three years.
After 3 years, Changtian Technology can license the technology to other companies for use, but within 3 years, the technology can only be used by Warwick itself.
Three years later, the two parties will renegotiate the subsequent patent licensing fees based on market conditions.
Ren Fei made such a suggestion after careful consideration, and even thought about this issue from the perspective of Changtian Technology.
In this way, whether Huawei gets orders in 3G or whether it makes profits has nothing to do with Changtian Technology. Changtian Technology can safely get 500 million yuan.
Three years later, if Huawei has made great achievements in the 3G market, the two parties can renegotiate the patent usage, Changtian Technology can also increase the price, and Huawei is willing to pay more royalties.
The suggestion made by Ren Fei was sincere and full of protection for Changtian Technology, so that most of the risks would be borne by Warwick.
When Wang Xiang heard about the patent royalty of 500 million RMB, he couldn't help but clicked his tongue.
He thought that communication technology would be very profitable, but he did not expect that it would be so profitable.
Warwick can pay up to 500 million in patent royalties, which means that Warwick has made more than 500 million by using this technology.
At present, Warwick still has plenty of cash, and as soon as he gets the technology, he will immediately bid overseas, and the funds will be withdrawn quickly.
Ren Fei also hopes that through this method, Warwick will have a certain degree of dominance in the use of technology.
More than 500 million?
Of course there are many.
Since the establishment of Changtian Technology, the technology developed has not been transferred to outsiders.
Therefore, the 500 million transfer of 3G communication technology should be regarded as Changtian Technology’s first technology licensing fee.
This amount of money is equivalent to the 10-year profits of many of Xia's top companies.
In the Xiaguo stock market, many companies do not even have a profit of 5 million yuan a year, let alone 500 million yuan.
If you don't have core technology, it will be difficult to do business.
This is why for many technology companies listed in Xia Guo, from 2008 to 2020, the corporate principal and financing amount were not used for scientific research or their own technology products, but for real estate speculation.
The money these companies make from real estate speculation is ten times or even dozens of times more than the profits they make from their main products.
Chen Xiao once saw a very funny listed company.
The main business loss for the whole year reached 50%, but it demolished its factory and used it to build real estate and made a lot of money. Therefore, judging from the financial statements, the company was profitable for the whole year.
Because real estate is one of the few industries that can make a lot of money without much technological content.
But Chen Xiao feels that 500 million is not much.
In Chen Xiao’s memory, Qualcomm holds 90% of 2G patents, 27% of 3G patents and 16% of 4G patents. These patents also made Qualcomm a lot of money. One year, Qualcomm only relied on these patents.
Authorized use has earned more than 6 billion US dollars.
Therefore, 500 million RMB is nothing compared to more than 6 billion yuan.
However, Chen Xiao does not intend to gain 500 million RMB in one go. If Changtian Technology wants to achieve a monopoly in the industry and have a say in the industry, it must exert influence on the entire industry.
So Chen Xiao said: "Changtian Technology hopes to send technical specialists to Warwick. We hope to have our own specialists participate in every order placed by Warwick."
The purpose of the technical specialist is to verify the number of orders and profits obtained by Warwick using patents.
"I hope to extract 20% of the profit from each 3G order of Warwick as the grant fee for intellectual property rights. When the total net profit of Warwick's 3G communication business exceeds 1 billion, Changtian Technology will extract 20% of the profit from each order.
Take 10% of the net profit.”
"The patent authorization period is 10 years. After 10 years, we can acquire the patent for use by other companies."
"Of course within these 10 years, Warwick can also use this patent to cross-license patents with other communication companies."
Chen Xiao assessed that by cooperating with Warwick in this way, although the one-time cash obtained is not much, the profits will become more and more abundant in the future.
In the future, even if Chen Xiao does nothing, he can still get the profits contributed by Warwick with his eyes closed, and offset inflation. How cool is that!
There are many patents in the field of communications, not just a single product.
Patented technologies are developed first and obtained first.
That is to say, even if you develop a certain 3G technology and the other party has developed it a few years ago, you must obtain the other party's authorization before using the 3G technology you developed yourself, otherwise it will be an infringement.
Therefore, one method currently adopted by global communication companies is patent s
For example, both technologies were developed independently, but the patents are distributed in two different companies.
Then the two companies can authorize each other to use each other, and neither will hold the other party responsible for infringement, nor will they charge patent royalties from the other party.
At present, the global 3G technology development level should reach 40% to 50%, and the 3G technology patents in the hands of Changtian Technology should be able to reach about 80% of all 3G technologies, making it the absolute industry leader.
If Warwick can't make money by holding Chen Xiao's 3G technology, then Chen Xiao will eat the Warwick communication base station not far away alive.