Reciprocity: From the price war to the technical warfare, the patent war has now begun

[PConline Talk] The hot summer season has passed quietly. I wonder if everyone has discovered that when you enjoy the cool air conditioning, the war between Midea and Gree, the two giants of China's home appliances, has long begun, triggering a wide range of industry attention. It is understood that the two domestic appliance giants mutually filed patent infringement lawsuits, and the accumulated claim amounted to nearly 100 million yuan. Recently, the United States filed a fourth lawsuit against Gree.


The picture comes from the network

Not much to say, let us look at the incident review:

Starting in June of this year, Gree filed a lawsuit against Gree after it sued the US air-conditioner for violating its use of new patent rights and claimed 50 million yuan. Adding the lawsuits previously filed in Suzhou and Guangzhou, this is the fourth lawsuit, and the claim amount exceeds 50 million yuan, including one invention patent and two utility model patents. In fact, the war was led by Dong Mingzhu Gree Electric first initiated three lawsuits, Gree first complained that the US "Refrigerating King" series of air conditioners infringed its patent rights, claim 50 million yuan, and asked the United States to destroy stocks, proprietary molds and equipment . Later, the United States "backed his teeth" and counterclaimed Gree's four lawsuits. Both parties demanded a claim of 50 million yuan, raising the patent warfare to 100 million yuan.

Event Comments:

For this matter, Gree and Midea unanimously declared that “it is now in the judicial process and it is inconvenient to comment. We believe that the law will make a fair and impartial judgment.” Why Midea and Gree will suddenly initiate lawsuits, and the node of time is just right in the heat Air conditioning season? In fact, the industry has always reserved the suspicion of speculation.

Heated competition in home appliance market, began to look for new routines

Looking through the 2016 earnings report of the United States and Gree, we can see that from the perspective of revenue composition in 2016, Gree Electric's main revenue comes from the air-conditioning business, with sales of 88.1 billion yuan, air-conditioning business revenue accounting for 81%; Midea Group The revenue comes from air-conditioning, small appliances, ice-washing and other services, of which air-conditioning business sales of 66.8 billion yuan, accounting for 42%, small household appliances business accounted for 27%, ice wash business accounted for 20%. The two major home appliances giants are highly competitive.

Undoubtedly, China's air-conditioning industry has entered a period of intensive progress. After a period of rapid growth, the white-electricity industry will soon reach its ceiling. From price war to technical warfare, when all strategies have been played by home appliance brands, major home appliances brands are seeking their own way out. For the two giants of home appliances in China, Gree and Midea have comparable market share, and it is inevitable that Take resources from your opponent.

Hong Shibin, a veteran home appliance observer, pointed out that "The data show that Gree and Midea are very similar in performance and scale. From now on, it seems that Midea's revenue is higher than Gree's 50 billion yuan, which will virtually pose a serious threat to Gree. Gree uses intellectual property rights. Stations, using small business opportunities, blocking the pace of peer expansion, is also a new type of competitive strategy."

Industry competition trends, from low-end price wars to high-end patent warfare

In fact, changes in the industry's competition trends can also be seen in the transformation of the Chinese home appliance industry, because consumer demand from the original economic pragmatism to the pursuit of high-end quality. Gree and Midea's patent warfare is likely to be the new competitive means for the next development cycle after the leading home appliance companies complete the brand building, industrial chain layout and channel layout.

Liu Buchen, a senior observer of home appliances, analyzed that regardless of the outcome, the patent warfare is good for both companies. Similar lawsuits between Samsung and Apple, Huawei and Samsung, and Coca-Cola and PepsiCo, through the lawsuit to enhance their brand awareness. On the other hand, it is because the lawsuit has provided the two with more opportunities to demonstrate their technical strength. From this point of view, both parties are winners.

However, it is unavoidable that intellectual property rights cases involve technologies that have complicated complexities, long trial periods, difficult trials, high litigation costs, and low compensation costs. This is tantamount to a huge burden on companies. There are also precedents to be found in the industry.

Small grass viewpoint:

As a post-90s consumer, I think that everyone's outlook on consumption has gradually changed. It is important to transform from the original “maintaining life is important” to “improving the quality of life.” Gree and the United States' mutual prosecution, on the surface, is a patented technology lawsuit in the field of smart technology. In fact, the other is "showing." Both home appliance giants are sending a voice to our consumers: We have already made the transition from China. To China quality, intellectual creation.

In the end, let's say a digression, with the increase in the amount of compensation, the company's illegal costs will also be greatly increased. In the future, the patent warfare between the home appliance giants will also become more intense, and the corporate risks of plagiarism and imitation will also increase.

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