Patent is the king of differentiation, and homogenization is a taboo in the market competition of enterprises. While the industry as a whole is in homogenization, some leading innovators have begun to highlight their technological strength and product advantages through technological innovation and patent applications, and enhance their industry status. According to industry insiders, in the market competition, patents can passively achieve the protection of product prices, and can take the initiative to obtain authorization from the same industry. The first level of patents can establish a basic technical threshold, so that competitors must pay royalties to patent holders, so the patent can be a hen that will lay golden eggs, let competitors help you sell products, or pad The cost of high competitors. For example, Qualcomm's 3G patent layout allows the company's competitors to pay a certain amount of authorization for each chip sold. The second-level patents can deter competitors from plagiarism, use the same technology to compete in the same market, or prohibit competitors' products from selling in specific regions. Recently, the patent litigation of Apple Inc. and South Korea's Samsung on smartphones is the case. China's LED display companies have been contracting for foreign brands from the early days and can be committed to the protection of patents of industrial brands. Now gradually transforming to the development of independent brands, we must be prepared to fight in the market and international brands, and patent rights are one of them. Most domestic LED display company patents focus on innovation in institutional design, while patents on institutional design are the easiest to avoid, so when it comes to patent cross-licensing, the value is relatively low. Taking the patent litigation of American Apple and South Korea's Samsung Company as an example, the offensive and defensive of litigation falls on software design, which is why Liard acquired a series of companies related to software development, and Alto emphasizes that its display operation monitoring system has obtained the United States. patent. The most lucrative part of the global LED display industry is system integration. For example, in the case of Daktronics, the company opened about 518 million US dollars in 2013, and the sales of Liard/Chouming/Jianlian totaled about 365 million US dollars. You can understand the difference between the profitability and industry status of a purely hardware company. As for patents for electronic components, such as driver chips, LEDs and controllers, they are supplied by suppliers.