Patent operation is an important sign of patent strength. On April 11, China's first communication patent company was officially established by TD Industry Alliance (TDIA), filling the blank of patent operation organizations in China's mobile communication field.  

"Mobile communication industry, the focus of today's global industries competition, is oriented by patents, assembled with patents and based on patents." says Pro. Cao Xinming, Executive Deputy Director of Intellectual Property Center, Zhongnan University of Economics and Law. "Patent operation is an important basis for the development of the industry; a professional patent operation organization plays an important role for Chinese companies competing in the global 3G & 4G industries and making overseas acquisitions." Cao adds.

"TDIA's action of incorporating patent business with the core companies in the whole TD industry chain is made for industry competition. It will promote the development of China's mobile communication technology and market, while facilitating China's 4G industry." Says Yang Hua, Secretary General of TDIA. It would lead to patent corporations in mobile communication industry under market mechanism, reduce barrier to entry for 4G technology, and to speed up commercial development of TD-LTE (standard of 4G communication technology) leading by China, especially to a lower patent fee of multimode 4G terminal around 1,000 Yuan. It will help China building a mobile communication industry patent system, dealing with possible patent disputes in the future, and developing international market. 

In recent years, there has been more and more mobile communication patent disputes in mobile communication technology fields, such as Huawei Technologies Co. Ltd.(Huawei) vs. MOTOROLA Inc. in the US and ZTE Corp.(ZTE) vs. Telefonaktiebolaget LM Ericsson in Sweden. Patent war becomes a common tool in the competition between Chinese and foreign communication companies. It intensifies the needs of patents of Chinese communication companies.   

After the top three communication operators obtained operating licenses in early 2014, China decided to invest 100 billion Yuan to develop 4G industry. Facing such a broad market, all the domestic and international communication giants pay close attention to patent portfolio to gain more advantage by patents.

 "What patent company solved are the practical problems of developing the competitiveness of Chinese companies and industries."Says Yang Hua. In Yang's introduction, establishing patent companies to gain more market advantages by patent operation is becoming more and more important, based on the fact that 4G industry developing so fast both domestically and internationally. 

As of now, TDIA has 90 Chinese companies as members, including many organizations contributing to China's TD industry such as Huawei, ZTE, Lenovo Group Ltd., and Beijing University of Posts and Telecommunications. An industry- university-research cooperation of patents creation, operation, protection and administration system has been developed and plays an important role in China's communication industry development. The newly established patent company will help Chinese company-owned patents playing a more important role in the communication technology market.

(Source: China IP News)