In the segment of mobile communications devices, most of the patents belong to a few large companies, and therefore all smartphone manufacturers are forced to deduct a certain amount from each copy of the product sold. Chinese OPPO is trying to prove by its example that the amount of license deductions can and should be challenged.

At least as the South China Morning Post told us, the People’s Intermediate Court in Chongqing recently accepted OPPO’s legitimate request to reduce the amount of licensing fees that the Finnish company Nokia receives for each smartphone sold by this Chinese manufacturer with communications support did. Networks across generations, from 2G to 5G. Nokia representatives rightly noted that the cited court decision concerns only the Chinese jurisdiction and represents the position of only one party. In addition, Nokia will appeal this decision and reminds that justice is on its side in other countries for now.

Companies have been discussing this issue since 2021, trials on the issue have been held in the courts of 12 countries, and this case has been tried in China since the same year. OPPO is demanding a reduction in the licensing fee for the launch of smartphones supporting 5G networks, which can currently reach 3 euros from each device sold according to Nokia’s requirements. The Chinese court ruled that in markets with developed economies (including Europe), the maximum amount of the license deduction could be $1,151, while in other countries, including China, it could be $0.707 per device.

In general, according to Chinese justice representatives, the burden in the form of license cuts in the smartphone industry should not exceed the range of 4.341% to 5.273%. The same decision indicates that for each smartphone that supports 4G networks, manufacturers should pay no more than $0.777 in developed economies and $0.477 in all other economies, including China. OPPO representatives express hope that the Chinese court’s decision will set an example for the entire industry and that the recommended license deduction amounts will be guided by judicial authorities in other jurisdictions.

While the sale of OPPO smartphones was banned in Germany due to such disputes with Nokia, the court in India sentenced the first of the companies to pay a license fee of 23% of OPPO’s revenue in the region. In Indonesia, the court sided with the Chinese manufacturer. The relevant brand, Vivo, had to reduce smartphone sales in the German market as of May this year. Vivo also had to abandon plans to introduce its smartphones to the Dutch market.