Xiaomi and Philips settle dispute, ending years of litigation

Xiaomi (1810) has confirmed that it had signed a license agreement with Philips for the use of UMTS and LTE patents, ending years of litigation.

The Universal Mobile Telecommunications System or UMTS is a 3G mobile cellular system for networks based on the GSM standard while LTE stands for Long Term Evolution and is also referred to as 4G LTE.

Philips had initiated patent infringement cases against Xiaomi in various countries including Britain, France, Germany and Netherlands. Xiaomi countered by questioning the validity of the patents.

The Beijing-based consumer electronics and smart manufacturing company is a keen investor in R&D and attaches huge importance to the protection of innovation. In addition to paying license fees, Xiaomi deploys various other methods to strengthen its patent portfolio.

As of December 31, 2021, Xiaomi owned more than 25,000 patents worldwide. It has also entered into strategic partnerships with several companies around the world, including Qualcomm, Nokia, NTT Docomo, Ericsson, among others as a way to obtain (cross) licenses for hundreds of thousands of patents in key technologies such as wireless communications, audio and video codecs and other sectors.

“For smartphone manufacturers, being able to secure reasonable royalties can effectively reduce product costs and allow more consumers to enjoy the fun of technology, ultimately benefiting consumers around the world,” said Paul Lin, Vice President of Global Business Development and IP Strategy at Xiaomi Technology.

“This agreement will promote the healthy development of the IP industry by boosting the protection of innovation achievements and mobilize technology innovations. Ultimately, it will further promote technology inclusion on a global scale,” Lin added.