Can Letv avoid patent sniping by rashly entering the US market?

According to Nanjing Hua News: on October 19, LETV will release two mobile phones in the U.S. market, which means that it has officially entered the U.S. market. As the most valuable market in the world, many mobile phone enterprises are actively entering the market. However, the management of intellectual property rights in this market is quite strict, and many domestic brands are deterred. Can LETV avoid patent war?

LeEco's entry into the U.S. market should be based on Coolpad's patents.

LeTV only released its mobile phone in April last year, and it has entered the top ten domestic mobile phone brands in more than a year. It is known as the fastest growing mobile phone brand in China. As an emerging mobile phone brand, it naturally does not have enough reserves in terms of patents.

However, it seems to have been prepared for this. In June 2015, just two months after the release of the mobile phone, Letv became the second largest shareholder with a stake of about 18% in Coolpad in 2.18 billion yuan. In June this year, Letv again invested 1.047 billion Hong Kong dollars to increase its stake in Coolpad to 28.9% to become the largest shareholder, thus obtaining the patent held by Coolpad.

As an established domestic mobile phone brand, Coolpad holds about 4000 patents and about 2600 invention patents. With the patents it holds, it has begun to enter the U.S. market last year, and it is expected that its overseas shipments will reach 10 million this year. The patents it holds are of considerable effect.

Letv's entry into the U.S. market should be based on the patents held by Coolpad as a guarantee for its entry into the U.S. market. In this respect, Letv's layout is obviously more ambitious than other domestic brands, and it began to enter the US market in just over a year after the release of mobile phones, which other domestic mobile phone brands do not have.

Letv can't rest easy because of this.

The domestic mobile phone brand Xiaomi entered the overseas market and worried about patents. It chose to enter the Indian market, which is not as strict in intellectual property management as Europe and the United States. It once ranked first among domestic mobile phone brands in this market and won the Indian smartphone market share in the fourth quarter of 2014. The fifth place. However, at the end of the same year, Ericsson sued Xiaomi for patent infringement in the Indian market, resulting in its mobile phones being banned from selling in the market for a time. Subsequently, the ban was lifted with the help of Qualcomm's reverse patent license, but mobile phones using MediaTek chips continued to be banned.

Xiaomi also wanted to enter the U.S. market. At the beginning, considering the lack of patents, it chose to sell mobile phone accessories and other products in the market first. By the end of last year, its mobile phone was sued by patent hooligans when it obtained FCC certification in the U.S.. The U.S. virtual operator that sold its mobile phone products quickly removed its products. As a result, it quickly reached a long-delayed patent licensing agreement with Qualcomm, acquired more than 300 patents from Intel, and cooperated with Microsoft to obtain patent licensing and acquire about 1500 of its patents. Xiaomi's own statement is that the total number of applications as of October last year exceeded 6000, and it is unknown how many patents it holds.

Today, ZTE has a large market share in the U.S. market by relying on tens of thousands of patents accumulated by itself, while Lenovo and TCL have opened up the market in the U.S. through the acquisition of patents obtained by MOTO mobile phone business and Alcatel mobile phone business.

Nanjing Hua Xun US Patent Analysis: Compared with the above-mentioned enterprises, the effectiveness of Coolpad's patents in the US market has to be verified by reality. It is important to know that ZTE and Huawei were recognized only after many years of litigation with international giants in the US market. Samsung, which obtained more than 5000 patents in the US market in 2015, even launched a patent war with Apple for several years, it can be seen that in the U.S. market to win the recognition of opponents all need to go through a tough patent war to win the market, Letv ready to deal with this tough battle?