STOCKHOLM / BERLIN – More than a dozen car manufacturers including Toyota and Nissanregistered with a platform to receive patent licenses from 51 technology companies, aiming to simplify access to wireless technology and avoid costly legal battles.
Part of the conflict stems from differing views among automakers, suppliers and technology companies over who should bear the costs of licensing.
Through the independent licensing marketplace Avanci, automakers have access to patents for 2G, 3G and 4G technologies from Finland’s Nokia, Sweden’s Ericcson and Taiwan’s Acer for all everything from navigation systems to sensors to autonomous driving.
Avanci charges a flat fee of $20 per car, up this month from $15 previously, with the amount distributed to patent holders. New contracts – also included RenaultStellantis, and Honda’s motobike – That means 80-85% of cars with 2G technology or more are licensed through the platform, Avanci vice president Mark Durrant said in an interview.
This model allows automakers to avoid the royalty wars that have raged between smartphone makers like Apple and Samsung and telecom companies, who negotiate one-on-one. to apply for a license. “The auto market is so fragmented that it’s not worth it for patent holders to negotiate with individual players,” said an industry source. “It’s a matter of efficiency.
Mercedes-Benzafterward Daimlerended a years-long dispute over the use of its patents last year with Nokia after it was eventually forced to pay. Volkswagen was sued by Acer for using its 4G technology without the proper license. In March, the automaker signed a contract with Avanci, which covers Acer patents, for the settlement.
According to an auto industry source with experience negotiating licenses, while suppliers used to pay for patent licenses in areas such as engine design, public companies Technology wants to deal directly with automakers on telecommunications patents.
“Usually vendors handle patents during development – telecommunications is an area they don’t handle,” said the person, who asked not to be named. Avanci is also working with companies on a new contract to include 5G patents, which will likely be more expensive than the current patent portfolio.
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