Core Viewpoint - The storage leader Jiangbolong's wholly-owned subsidiary, Yuan Yuzhi Technology, has filed a lawsuit against another listed storage company, Baiwei Storage, over two necessary patent disputes related to eMMC standards, with both parties claiming to fulfill their obligations as patent holders but disagreeing on the negotiation process [1][4]. Group 1: Patent Dispute Details - Yuan Yuzhi Technology claims that the involved patents are necessary for the eMMC standard set by the JEDEC Association, and Baiwei Storage has allegedly infringed these patents by manufacturing and selling products without permission [2][4]. - The original applicants of the two patents in question are Nokia, and after several transfers, the patents are currently licensed to Yuan Yuzhi Technology by Emter Storage Technology [1][2]. Group 2: Legal Framework and FRAND Principles - The eMMC standard is primarily aimed at embedded storage for mobile phones and tablets, and the infringement claims arise from Baiwei Storage's products that comply with this standard [2]. - The FRAND principle, which stands for "Fair, Reasonable, and Non-Discriminatory," is crucial in this context, requiring patent holders to offer licenses under fair terms and preventing unreasonable expansion of patent rights [3][5]. Group 3: Negotiation Process and Claims - Both companies assert adherence to the FRAND principles, but they disagree on whether Baiwei Storage made mistakes during the licensing negotiations, with Yuan Yuzhi claiming Baiwei acted improperly [4][5]. - Baiwei Storage maintains that it has acted in good faith and cooperated fully during the negotiation process, denying any wrongdoing [4][5].

Core Viewpoint - The article discusses a patent dispute between two leading companies in the domestic storage industry, Shenzhen Jiangbolong Electronics Co., Ltd. and Shenzhen Baiwei Storage Technology Co., Ltd., highlighting the implications for the industry and the ongoing trends in patent litigation and technology competition [1][2]. Group 1: Patent Dispute Details - Jiangbolong's subsidiary, Yuan Yuzhi Technology, filed a lawsuit against Baiwei Storage for patent infringement, seeking compensation of 1.21685 million yuan [1]. - The patents in question relate to core technologies for eMMC storage devices, originally owned by Nokia and later transferred to Jiangbolong's affiliates [1]. - Baiwei Storage asserts its compliance with FRAND principles during negotiations and claims insufficient legal basis for the lawsuit [1]. Group 2: Financial Impact and Industry Trends - The amount in dispute represents only 0.79% of Baiwei Storage's Q1 2025 revenue of 1.543 billion yuan, indicating a limited immediate financial impact [2]. - The eMMC technology at the center of the dispute is a mainstream solution in the embedded storage market, with Baiwei Storage's revenue in AI edge storage exceeding 1 billion yuan in 2024, reflecting a 294% year-on-year growth [2]. Group 3: Legal Considerations - The case may focus on three key legal issues: whether the implementation of standard-essential patents constitutes infringement, the reasonableness of licensing fees under FRAND principles, and the conditions for applying injunctions [3]. - Baiwei Storage plans to file for a declaration of patent invalidity and continue developing high-end products like LPDDR5X and PCIe5.0 [3].