In 1995, Huawei first chose Hong Kong with a very similar culture, because its technical level was limited and the threshold for communication equipment manufacturers from developed countries to enter Hong Kong was very high. Therefore, Huawei immediately established a joint venture with Hutchison Telecom in Hong Kong. With the efforts of Huawei employees day and night, it completed the construction of a comprehensive commercial network of about 36 million yuan in three months, which was a great achievement at that time. With its low price and thoughtful service, Huawei's reputation in Hong Kong is getting better and better, and Huawei has also completed its first step towards globalization.
shortly after Huawei entered the Russian market, the Asian financial turmoil hit Russia's already fragile economy. At the same time, the Russian leadership has also made a very wrong decision. Although the famous "shock therapy" has played a good role in boosting the western economy, Russia's economic level and development environment are different from those of western countries. According to this method, Russia's economy has deteriorated. Russia's domestic economy is not only unable to improve, but also in danger of paralysis. At that time, many foreign businessmen withdrew from the Russian market. The same applies to communication. International brands such as Alcatel and Siemens did not hesitate to withdraw from Russia for self-protection, but Huawei decided to stay. In June 1997, Bertau Huawei was formally established, mainly responsible for the production of digital program-controlled switches and other equipment. When other manufacturers quit, Ren Zhengfei stayed because he saw huge business opportunities in the Russian market. Russia has a large population and a vast territory, but the transmission rate is very low. As long as we stick to this position, we can get significant benefits, but he didn't expect it to last for six years. In the whole six years, Huawei has only one company in the Russian market, with only $38. This is not acceptable to every company because it can't work. However, Huawei has clearly recognized the Russian market and deeply touched the Russians with his persistence. Even without business, Huawei people have not stagnated. They continue to release Huawei's technology and products to Russian users. After six years of perseverance and dedication, Huawei finally achieved a bumper harvest. In the 21st century, Huawei won two projects: the transition to Kilar Telecom and Moscow MTS mobile network. In 22, Huawei won the 3,797-kilometer national optical transmission line project from Moscow to Novosibirsk. After tasting sweets, Ren Zhengfei invested another $8.5 million in the Russian market in 25 to establish and enrich Huawei's market in Russia. So far, Huawei's annual income in Russia has reached billions of dollars. Huawei finally realized its original vision, became the leading telecom manufacturer in Russia, and established long-term cooperative relations with the Russian government and manufacturers, which was recognized by the Russian government and people.
After the opening of the markets in Hong Kong and Russia, Huawei continued its strategy of encircling cities from rural areas and began to develop markets in Africa and Latin America. These two regions are poor in natural conditions and backward in economy. Due to years of wars and diseases, foreign businessmen are generally eager to invest. Therefore, Huawei employees risked their lives to develop the local market. For example, when you enter the Congo market, there is a war. A group of people were happily discussing the market plan in the office when suddenly a gunshot came from outside. A bullet hit the wall of the house and frightened Huawei employees who met in the house. There were more than 3 employees in the whole office at that time. They were very scared and soon found a hiding place in the house. Some people make phone calls, send text messages, and some even start writing wills. Huawei has encountered new difficulties in Latin America. On the one hand, the languages in Latin America are mainly Portuguese and Spanish, which makes communication difficult. On the other hand, many countries have not established diplomatic relations with China. It is conceivable that China will have difficulties in this respect. Huawei immediately made a major market breakthrough in this situation. In 26, Huawei established the first 3G trading office in Africa in Mauritius, and then established the longest communication network in South Africa. In the past ten years, its sales in South Africa have reached 1 billion yuan, and now it is growing. In 211, Huawei announced that it would invest 3 million US dollars to build a research center in Brazil. In 212, Huawei's total sales in Brazil reached $2 billion. At the same time, Huawei's development in other Latin American countries is also very rapid. For example, Huawei has become an important supplier in the Argentine market; In Chile, Huawei is the partner of all major telecom companies in Chile. In 21, Huawei's sales in Chile exceeded $2 million. The United States is also in Venezuela, a small country. In 27, Huawei won most contracts for the construction of its glass fiber backbone network. In 212, Huawei had 1,4 employees in Venezuela. In Peru, Bolivia, Dominica and Ecuador, Huawei has made major breakthroughs in the market.
after Huawei occupied the markets in Asia, Africa and Latin America, Huawei has the capital to compete with large companies in the most mature markets in Europe. Therefore, Huawei decided to enter the European market. Although the output value of the European market is high, the competition is beyond imagination. As soon as Huawei entered the European market, it failed several times because of its low popularity and poor technology. Ren Zhengfei decided to adopt the strategy of encircling cities from rural areas in Europe. He ordered Huawei's distributors to enter the poorest and most difficult places in Europe and places that other manufacturers did not want. Huawei has also lost many excellent employees in the European market. Some of them suffered air crashes, shipwrecks and some terrorist attacks, many of which occurred in remote and backward areas. However, Huawei has opened a gap in the European market. Once, a British international operator wanted to develop the Portuguese market and was going to set up a communication network in Portugal. Because of their limited strength, they want to invite Nortel, Lucent and Motorola to invest together. As a result, the ratings of these three companies are much higher than expected. Huawei immediately seized the opportunity to build a communication network covering the whole of Portugal by using one third of the price of other communication lines. After the implementation of the project, Huawei gained temporary recognition in Europe. Huawei began to use the trust and connection established by the project to better develop the markets of other countries. Later, Huawei occupied the French, German and British markets, and finally occupied Europe.
Huawei's development speed in the international market exceeds most people's imagination. In Asia, Africa, Latin America and Europe, Huawei is entering the market at an alarming rate. This is why many competitors are very anxious when they learn that Huawei has entered their own field. American companies are no exception. Everything Huawei has done so far has been seen by American companies, and they have a strong sense of crisis. In fact, Huawei has long planned to enter the US market. American telecom market is the most mature telecom market in the world, and it is also the largest communication demand market in the world. But at the same time, the United States has the most mature companies, many of which have a history of hundreds of years. It is difficult for any foreign businessman to get a piece of this. In addition, the communication market here is saturated, and the prices and services are relatively uniform. No company can rely on these to obtain greater benefits. Huawei knows that it has no advantage over Cisco, so its plan to enter the American market has been postponed repeatedly, because Ren Zhengfei hopes that Huawei will gain enough development space and raise enough funds elsewhere before entering the United States. After everything went well in the European market, Ren Zhengfei officially chose the American market. When Ren Zhengfei imagined how he could compete with Cisco in the American market, he didn't expect Cisco Huawei to go to court. In December 22, the vice president of Cisco Huawei visited and directly accused Huawei of infringing Cisco's intellectual property rights, demanding that Huawei not sell products and pay compensation. Aware of the seriousness of the problem, Huawei agreed to suspend the sale of products related to intellectual property disputes and conduct a thorough internal investigation. This is Huawei's first compromise. After all, Ren Zhengfei doesn't want to create unnecessary problems for himself in the American market. However, Ren Zhengfei also said that Huawei did not infringe and did not accept infringement lawsuits. Cisco is not satisfied with Huawei's practice. On January 22, 23, he sued Huawei for infringing Cisco's intellectual property rights in the United States. The indictment is 77 pages long, including 21 pages of fees, such as patents, copyrights, unfair competition and trade secrets. As soon as the complaint was filed, Huawei's image was seriously damaged.
Here, we want to say that Cisco's complaint is not very wise, but there are loopholes that can be exploited, because the United States has been committed to research technology since World War II. No matter what industry, they have the most advanced technology in the world. If they promote their products around the world, manufacturers in other countries will imitate and produce the same or similar products. This is almost a business model that one or two companies cannot change. China company itself lacks technology and can only imitate the advanced products of the United States. Although Huawei has developed for more than ten years, it has made great technological progress and independently researched and developed, but it still lacks product function innovation. The shadow of American products can be seen in many places. This gives Cisco a chance.
If you analyze it carefully, you will find that Cisco's measures against Huawei are intentional. Cisco informed Huawei of this violation in December last year, and filed a complaint in January this year, asking for time, because January 22 this year is only nine days away from the Spring Festival. Huawei is preparing for a holiday and lacks the ability to cope with pressure. At this point, Huawei just lacks pressure response and has no chance to deal with materials that can prove its innocence. If Huawei loses this lawsuit, it will lose a large number of customers and suffer a major blow in domestic and foreign markets. During the appeal, Cisco decided to kill Huawei.
Ask the court to convict Huawei, pay damages for Cisco's patent infringement, award Huawei all profits and profits from Cisco's patent infringement, award Huawei compensation, award Huawei compensation for all economic losses caused by Cisco's infringement, and award Cisco legal damages and other damages, such as goodwill, for the reasonable legal fees charged by Cisco in this case. . .
according to this compensation plan, Huawei will pay tens of thousands of dollars. After the complaint, Huawei's international market partners suspended their business with Huawei and adopted a waiting and waiting attitude. At the same time, many domestic companies began to seize Huawei's domestic market. During this time, Ren Zhengfei began to complain about his depression and suffered from cancer. At this time, severe insomnia and depression made Ren Zhengfei cry every night, but the next morning he stood up and worked at Huawei as usual, which showed his extraordinary perseverance. Ren Zhengfei appointed Guo Ping as the most talented principal complainant. At the same time, take the initiative to contact the American media and inform Huawei to the public through the media. When the American media found out that Huawei had been hiring world-class companies to clean up accounts and provide management services since 1998, it was very shocked, because it needed strong strength and reputation, because first-class financial companies would not cooperate with corrupt companies. In this way, the media's attitude towards Huawei changed. Ren Zhengfei realized that if he wanted to reverse this situation, he had to follow American rules, so he hired Robert Halsam, a well-known lawyer in the United States and the world. The lawyer's fee is as high as $63 an hour. Facts have proved that this decision is correct. Lawyer Robert Haslam helped Huawei find a big loophole in Cisco, that is, private agreement. The so-called private agreement refers to the agreement entered into by the company itself, which is only applicable to the equipment products produced by the company. The purpose of private agreement is to realize technology monopoly, so that the company can obtain exclusive and high profits. Under normal circumstances, the company will give up the compatibility with similar equipment of other companies and seek a dominant position. Cisco ranks second in the communication network industry, accounting for 8% of the global market share. Their routers have long been the industry standard. If other manufacturers want to survive in the market, they must produce routers according to their own standards, which is why the products on the market are very similar to Cisco products. There is a debate about whether routers manufactured according to Cisco standards infringe on property rights. Finally, private agreements may constitute an industry monopoly that is not allowed in any market. This is why countries have different judgments on private agreements. In the United States and Australia, private agreements are protected by law, but in many European and Asian countries, private agreements are not protected by law. In this way, Huawei did find strong evidence to defend itself, that is, the router made in China did not involve any infringement.
at the first hearing, Huawei put forward the idea of private agreement. At the same time, she sued Cisco for deliberately hurting Huawei, deliberately suppressing Huawei, and especially slandering Huawei for destroying nuclear technology, which caused Huawei to suffer serious economic losses worldwide. After the hearing, Huawei told the media that "Cisco's behavior should restrict competition." Huawei fought back and hit Cisco. At that time, 8% of Cisco's network equipment could be used in the China market, which was equivalent to a hidden monopoly through private agreements. Although monopoly and cartel were rarely mentioned in China at that time, monopoly was a serious economic problem in the world. Ren Zhengfei lodged a complaint directly in China, accusing Cisco of monopolizing the China airline market in disguise. Cisco thought it would win, but did not expect Huawei to make such a large-scale counterattack, which made Cisco a loser.
in the United States, Huawei has also started a strong counterattack. They filed an 18-party defense in Marshall Court, Texas, and filed a counterclaim against Cisco. It listed more than 9 allegations made by Huawei against Cisco: "In Huawei's reply to the court, Huawei has 27 reasons to deny it; Huawei has 32 reasons to deny Cisco's infringement allegations; Huawei has six reasons to deny the accusation of stealing trade secrets; Huawei has four reasons to deny the allegations of embezzlement under the customary law. " Huawei also demanded that "the court judge Cisco and ask the court to give Huawei sufficient compulsory compensation".
It is worth mentioning that the court then compared the source codes of Huawei and Cisco. Huawei's source code exceeds 2 million, while Cisco's source code exceeds 2 million, and the correlation between them is only 1.7%. Some people call it "2 million softwares, copying a software ten times bigger than you is equivalent to one thousand and one nights". Obviously, the situation of Huawei is changing.
on March 2th, 23, Huawei established a joint venture with 3Com of the United States. The two sides set up a joint venture called Huawei 3Com. When Cisco sued Huawei, 3Com CEO Kraft said that he wanted to correct Huawei's name. At that time, he told the media quite openly: "Huawei's engineers are very talented. They operate the latest equipment and software in the spacious office. They have the most modern robotic equipment I have ever seen. " I have been to Huawei many times, and I have been doing two-page authentication for eight months. After decades of career, I guarantee that Huawei's technology and strength are reliable. In case of infringement, 3Com will not bear the huge risk of establishing a joint venture with it.
facing the first department of Huawei.