Chapter 550: Reconciliation? Paul: I don’t dare to gamble! I’m afraid you’ll strangle me!
Can we win?
Paul Jacob's expression froze and he immediately fell silent.
From November 2013 to January 2014, a period of three months, Qualcomm's powerful legal team read the materials submitted by both parties hundreds of times.
The final conclusion is that it is easy to win this patent infringement case, but it is difficult to achieve the expected results.
Because the patent pool built by Tiangong Technology also blocked Qualcomm's way out.
Once Tiangong Technology sues Qualcomm in intellectual property courts in Europe, South America, Southeast Asia and other regions, Qualcomm will have no choice but to respond.
Based on the current chain of evidence and patent comparison, Qualcomm has a 60% to 70% chance of losing the lawsuit.
"Boss, the other party is very well prepared. If we can't apply for pre-litigation preservation, I suggest negotiating with Tiangong Technology."
Longfellow, head of the legal department, said bluntly.
"If Qualcomm can't win, does that mean Tiangong Technology can?"
Paul Jacob turned around and looked directly at Chen Yansen and asked.
"Let's go to the 21st floor for a drink?" Chen Yansen heard the other party's implication and suggested with a smile.
The 21st floor is where the hotel's executive corridor is located. In addition to providing food and beverages, it also has a lounge area and meeting rooms.
"Mr. Chen, please!" Paul raised his hand.
Just at this moment, the elevator stopped at the current floor.
The two smiled at each other and walked in.
Song Yuncheng pressed the floor button and the elevator door slowly closed.
Both Chen Yansen and Paul Jacobs are typical businessmen.
Prosecution is just one of the tools each side uses to curb its opponent.
Since the goal cannot be achieved, it is natural to try another approach.
If Paul Jacobs can lose face, Chen Yansen can certainly do it too.
What's more, the Snapdragon 810's poor reception on the market dealt a heavy blow to Qualcomm.
In contrast, Tiangong, Nvidia and Huawei have made up for each other's shortcomings through cooperation in the form of cross-patent licensing.
This was hard for Paul Jacob to accept!
Especially after comparative testing, it was found that Tegra 4H's power consumption control and performance are better than Snapdragon 800. Although its performance is not as good as Snapdragon 810, its power consumption is much lower than Snapdragon 810.
Tegra 4H integrates NVIDIA's self-developed baseband module and fully leverages its advantages in the GPU field, making it a high-quality processor product.
Although MediaTek's MT6599 is not as good as Snapdragon 800, the gap is not obvious. Relying on its advantages of good quality and low price, it has snatched a lot of orders and customers from Qualcomm.
Together with the Tiangong A100, these three processors have a huge impact on the Snapdragon series.
The technical department has conducted in-depth research and found that the superiority of Tiangong A100 and Tegra 4H is not only reflected in graphics processing capabilities and signal decoding, but more importantly, both products use the encoding rules of the Orange Z1 instruction set.
Previously, although Qualcomm purchased the architecture license for the Orange Z1 instruction set, it was only used for research and learning and had no intention of using it to develop new products.
Now, faced with a dilemma, Paul Jacob hesitated.
But if the Orange Z1 instruction set architecture technology is adopted, who can guarantee that after the contract expires, Tiangong Technology will not ask for a sky-high price or strangle Qualcomm?
Paul didn't dare to gamble before the deal was made!
The two people had their own ulterior motives. They smiled on the surface, but in their hearts they were thinking about how to plot against each other.
With a "ding" sound, the elevator door opened.
"please!"
This time it was Chen Yansen who spoke.
Paul smiled and looked at him deeply.
The two of them gave way to each other and then walked out of the elevator together.
"Huh? That Asian guy next to Paul looks familiar?"
At a dining table not far away, Google CEO Larry Page asked the executive director next to him.
"Boss, he is Chen Yansen, the founder of Sunlink Capital." Eric Schmidt pushed his glasses, stared at him for more than ten seconds, and then turned around and replied.
"How did they get together?" Larry looked at Paul and Chen Yansen who were slowly walking towards him with a strange look on his face.
Eric folded his arms and gave a meaningful smile.
Seeing this, Larry leaned back and smiled awkwardly.
He was a smart man and immediately realized that he had asked a very stupid question.
Chen Yansen walked forward with big strides.
It was dinner time at this moment, and he saw many familiar faces along the way.
Microsoft founder and technical advisor Bill Gates!
Zuckerberg of Facebook!
Lloyd Blankfein of Goldman Sachs!
UBS CEO Sergio Ermotti!
He didn't know most of the remaining people.
He met the heads of Goldman Sachs and UBS when he went to New York to ring the bell for their IPOs last time.
When Chen Yansen passed by, he stopped and greeted him briefly.
Paul was also busy, and exchanged a few words with the chairmen of Microsoft, Cisco, and Intel.
Three minutes later, the two sat down at a table next to the French window.
Outside the window, the night is dark, the mountain shadows are as black as ink, and the snow surface reflects the faint light from the sky.
Chen Yansen picked up the teacup, took a sip, then turned his right hand sideways, spread out his palm, and motioned for Paul to speak first.
Paul waved his hand and kicked the ball back.
Whoever speaks first loses the initiative, and neither of them wants to suffer any loss.
Chen Yansen leaned back and observed his surroundings.
If the other party is not in a hurry, then he won’t be in a hurry either.
After all, he had already prepared himself mentally for a five to ten-year lawsuit against Qualcomm.
If you can talk, talk. If you can’t talk, fight!
In mid-December, when Zhang Weili, President of MediaTek's Dahua region, visited MediaTek to discuss cooperation, the two parties signed a cross-licensing agreement on some patents in the areas of GPU, CPU and baseband.
He has found a rival for Qualcomm!
Even if Tiangong Technology does not come forward, Nvidia and MediaTek will not give up competing with Qualcomm for the mobile processor market for their own interests.
Who wouldn’t be jealous of the hundreds of billions of US dollars in profits every year?
Paul was also very patient. He pinched his cuffs, touched the buttons from the edge, and his fingers nimbly circled the edge of the buttons.
The female assistant sitting next to him didn't know what she was thinking, and subconsciously squeezed her legs together.
Seeing that no one spoke, Song Yuncheng simply looked at the scenery outside the hotel.
After about ten minutes, Paul sighed slightly and couldn't help but ask, "Mr. Chen, where did Tiangong Technology get its RF integration and modulation and demodulation technology?"
“It’s from research and development.”
Chen Yansen cherishes words as if they were gold.
The expression on Paul's face froze, and he cursed inwardly: Are you kidding me?
He took a deep breath and said straight to the point: "I can license some of the patents for modulation and demodulation methods, frame structures, and coding protocols to Tiangong Technology free of charge, but Tiangong Technology's related patents must also be shared with Qualcomm free of charge."
Paul holds a PhD in electrical engineering and computer science from the University of California, Berkeley, and is well-versed in technologies in the fields of communications and integrated circuits.
When he said this, he was taking the initiative to lower his stance and start peace talks.
It should be noted that Qualcomm has always been very tough on patent barriers, and it is a rare concession for it to agree to share core communication patents.
It is noteworthy that Paul's wording is free.
"Which technologies? Tell me about them."
Chen Yansen looked at the other party leisurely and asked in reply without denying it.
The patents he gave to MediaTek, Huawei, ZTE and Nvidia can also be given to Qualcomm.
As for other patents, sorry, you have to pay extra!
For example, Huawei's Kirin 910 chip, which is about to be launched, uses the core technologies of Orange Z1 instruction set, Xuanshu architecture and Hongyan baseband. 40% of it is purchased and 60% is replaced.
But in the end, you still have to pay for it.
"The perpetual architecture license for the Orange Z1 instruction set, the Xuanshu GPU architecture, and all overlapping patents between Qualcomm and Tiangong Technology in baseband modules."
Paul said slowly.
"Then I want CDMA's soft switching, power control, and Rake receiver technology. I think Mr. Paul has no objection, right?"
Chen Yansen replied with a smile.
When doing business, who doesn’t ask for an exorbitant price?
"Hahaha, that depends on what leverage Mr. Chen can get."
Hearing this, Paul felt relieved.
Because he got a signal from Chen Yansen's tone that the other party did not want to waste time and energy on a patent infringement case that was doomed to fail.
The conversation between the two was just a test.
A patent cross-licensing agreement must be signed, but the specific details of the patents involved must be finalized after detailed and professional calculations by the intellectual property and legal personnel of both parties.
Because the value of each patent varies greatly.
Some are core basic patents that lay the foundation for the technical framework, some are edge improvement patents that optimize details, and some may be application-oriented patents for specific scenarios.
What the legal team needs to do is not only to verify the validity and coverage of the patents, but also to refer to the transaction data of the global patent licensing market in the past five years and mark a reasonable "exchange value" for each patent included in the agreement.
"Mr. Jacob, nice to meet you!"
Chen Yansen raised his teacup and used tea instead of wine, which was considered a real greeting.
"Mr. Chen, it's a pleasure to work with you."
Paul smiled with satisfaction and responded immediately. The coffee cup in his hand gently touched Chen Yansen's tea cup, making a crisp sound.
His assistant frowned, not understanding at all: the two of them clearly didn't agree on anything, so how could they be "cooperating happily"?
Song Yuncheng's English level is average. He has no problem with daily communication, but he has some difficulty when encountering complex professional vocabulary.
She understood most of it in bits and pieces, her mind racing, and after pondering for a moment, she had a vague answer in her mind.
After putting aside his grudges, Paul talked about cooperation with Chen Yansen while drinking coffee.
He knew in his heart that Orange phones were no less powerful than Apple phones in the global market.
In addition, with Orange Technology's growth rate, it is possible that the shipment volume in 2014 will exceed 160 million units, or even 200 million units.
Simply put, Senlian Capital is both a peer of Qualcomm and an important purchaser of Qualcomm.
Apple has its own A-series chips.
Shanxing has Exynos chips, and the Snapdragon chips it carries account for less than 40%.
To put it bluntly, Qualcomm cannot do without Orange Technology.
This is another reason why Paul was willing to reconcile.
Of course, the words "we can't win" from the legal and lawyer team were the key to his final resignation.
If there is a 50% chance of winning, Paul will form a powerful team of lawyers around the world and sue Tiangong Technology into bankruptcy.
He knew better than anyone that the four words "happy cooperation" were more about giving both parties a decent way out than reaching a consensus.
Qualcomm needs Tiangong Technology's baseband patents, and Tiangong Technology also needs Qualcomm's basic patents in the communications field to safeguard its expansion in overseas markets.
Otherwise, who knows when another company will come out and sue Tiangong Technology for infringement.
After all, for some basic patents, the patent barriers that others have spent more than ten years building are difficult to circumvent.
Therefore, this peace talk was actually a tacit agreement between the two sides to temporarily cease fire after weighing the pros and cons.
Half an hour later, Paul got up and left.
Chen Yansen looked at the other person's back, a hint of joy flashing in his eyes.
He had been planning this since the day Tiangong Technology was founded. Fortunately, everything went smoothly without any danger.
At this time, a 30-year-old middle-aged man in a jacket came over. After seeing Chen Yansen, he couldn't help but breathe a sigh of relief: "Mr. Chen, Mr. Li and Mr. Sun invite you to the conference room to discuss the procedures for tomorrow's forum."
"Okay, please lead the way."
Chen Yansen nodded in response.
After a while, the three of them entered a luxuriously decorated conference room. The person in the lead was Li Qingsong, who had not been seen for a long time.
Song Yuncheng, who was following behind him, was surprised, but he remained extremely calm.
(End of this chapter)
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