Avanci bullish on China's burgeoning patent regime

China's rising role in global innovation is increasingly reflected in the evolution of international patent ecosystems, with more technologies originating from the country and gaining global traction, said an executive.

"We have seen a development where more and more innovations are basically made in China," said Kasim Alfalahi, founder and CEO of Avanci, a United States-based patent licensing platform for cellular communication technologies.

First visiting China in 1997 and having since traveled to the country more than 100 times, Alfalahi told China Daily that he has witnessed its rapid transformation over the past three decades.

"The pace of development has been remarkable," he said, adding that in the telecommunications sector, China's role has evolved significantly over time.

"Starting from 4G, we have seen a growing share of innovation coming from China, and by the time we look at 6G, China is already playing a leading role in shaping global development. That is very impressive," Alfalahi said.

He said that as China enters a stage of high-quality development, with a greater emphasis on technology empowerment and open collaboration, its innovation is increasingly contributing to the global ecosystem.

"We are seeing innovation reach a new level, where many breakthroughs from China are enabling developments worldwide, while at the same time more global innovations are entering China."

The development is clearly reflected in Avanci's own business, Alfalahi said, with a growing number of Chinese companies having joined the platform as licensors.

Over the past year, companies including Lenovo, Quectel and Vivo have become licensors, joining earlier participants such as China Mobile, China Unicom, China Telecom, Huawei, ZTE, Datang Mobile, Oppo and TCL.

"Now we have about 20 Chinese licensors on the platform, which is the largest number from any country in the world," Alfalahi said, adding that the number will further grow given the country's strong innovation momentum.

Li Chaojun, a senior executive at Huawei's wireless intellectual property department, said earlier that Huawei's participation in the Avanci patent pool marks a shift in Chinese inventors' role from technological accumulation to global value cocreation.

"The true value of innovation lies in its wide application," Li said.

Meanwhile, Avanci has also been expanding its base of licensees in China. On March 31, the company announced that seven China-based automakers had joined its licensing platform. To date, these companies have signed a total of 10 agreements under its 4G and 5G vehicle licensing programs.

Looking ahead, Alfalahi said the rapid development of intelligent connected vehicles in China is expected to drive further expansion of licensing schemes, particularly in the vehicle aftermarket segment, to support innovation in infotainment and lifestyle applications.

However, despite the growth momentum, Alfalahi acknowledged that striking a balance between incentivizing innovation and controlling costs remains a key challenge.

"If you ask licensors who create the technology, they think they are not getting enough. And if you ask the car companies, they think they are paying too much. Our job is really to find the right balance between these two sides," he said.

lijiaying@chinadaily.com.cn