When we connect our phones to Wi-Fi to watch videos or use our laptops for online work, few people think about the complex network of patents hidden behind this seemingly “free” technology. Wi-Fi technology not only has patents, but using it does indeed require payment of patent fees. However, this fee is typically not paid directly by us ordinary users, but rather by device manufacturers, which is ultimately reflected in the product price.
1. Who invented Wi-Fi? Where do the patents come from?
Wi-Fi was not the result of a single person’s “flash of inspiration”; it is a technological achievement driven by multiple research institutions and companies worldwide. Among them, scientists from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in Australia made key breakthroughs in the 1990s. They solved the interference issues of wireless signal transmission in complex environments, laying the foundation for modern Wi-Fi and successfully applying for core patents.
In addition, tech giants like Qualcomm, Huawei, Intel, and Broadcom have contributed numerous innovations to the evolution of Wi-Fi technology (such as Wi-Fi 4, Wi-Fi 5, Wi-Fi 6, and Wi-Fi 7), holding thousands of Standard Essential Patents (SEPs). These patents are essential technologies for implementing Wi-Fi standards, and any company wishing to produce compatible devices must use them.
As a result, the Wi-Fi patents are still held by the Australian government. With the increasing popularity of Wi-Fi technology and the growing number of devices using Wi-Fi, the Australian government has subsequently engaged in lawsuits with many large companies. Almost all major phone and computer companies you can think of, including Apple, Microsoft, Sony, Dell, etc., have been involved in lawsuits with them.Because they hold the patents, it is no surprise that these companies have lost their cases. They must pay patent fees to the Australian government when producing phones and computers.
2. Why do we need to pay patent fees?
Imagine if a company invests heavily in developing new technology, only for others to use it for free; who would be willing to innovate? The patent system is designed to protect the rights of innovators.
When your phone, router, or smart TV supports Wi-Fi functionality, they must comply with the internationally recognized IEEE 802.11 standard. To achieve this standard, the patented technologies held by the aforementioned companies must be used. Therefore, device manufacturers (such as Apple, Samsung, Xiaomi, etc.) must pay patent licensing fees to the patent holders to obtain the legal right to use these technologies.
3. How are patent fees collected? Who collects them?
There are mainly two ways to collect patent fees:
1. Direct negotiation: Device manufacturers negotiate one-on-one with patent holders (such as Huawei, Qualcomm) to reach licensing agreements. For example, Huawei announced in 2023 that it would charge a licensing fee of $0.50 for each consumer device using its Wi-Fi 6 patents.
2. Patent pool licensing: Some patent holders bundle their patents and manage them through third-party organizations (such as ViaLicensing), forming a “patent pool.” Manufacturers only need to pay a fee to the patent pool to obtain the rights to use multiple patents, simplifying the process.
4. Do we users have to pay?
Looking directly, no, you do not need to pay Huawei or CSIRO monthly for “using Wi-Fi.” But indirectly, you have already paid. The patent fees paid by device manufacturers become part of the product cost, ultimately reflected in the prices of phones, computers, and routers. It can be said that the money you spend on devices already includes the “Wi-Fi patent fee.”
5. Future Trends: Wi-Fi 7 and Patent Landscape
With the arrival of Wi-Fi 7, the technology is becoming more complex, and patent wars are intensifying. According to the latest reports, Huawei is leading globally in the number of essential patents for Wi-Fi 7, while Ericsson is the main patent holder in Europe. This means that in future smart devices, the landscape of patent licensing will become more diversified, potentially affecting the competitive dynamics of the global technology industry.
In conclusion
Wi-Fi may seem “free,” but it is actually “priceless.” Behind it lies the wisdom of countless researchers and the continuous investment of companies. The patent system ensures the sustainability of technological innovation, allowing us to continuously enjoy faster and more stable wireless networks. Behind this convenience is a sophisticated collaboration of technology, law, and business.