Any Opinions?>
7/02/99 - Group Proposes Cap For 3G Mobile Equipment
Jul 02, 1999 (Tech Web - CMP via COMTEX) -- The UMTS Intellectual Property Association (IPA), which includes the world"s major telecommunications-equipment makers,
has proposed a maximum 5 percent royalty for the licensing of patents essential to the making of various types of 3G mobile-communications equipment as part of a proposed
patent-licensing scheme.
Seeming to have found a compromise acceptable to most of its constituents within a self-imposed deadline of June 30, the UMTS IPA is presenting the 3G patent platform as
the commercial enabler for 3G systems. It is inviting interested parties to join a partnership that will begin on Sept. 1,1999, prior to the 3G Patent Platform coming into effect
on March 1, 2000.
However, as recently as one month ago, Qualcomm, in San Diego, was saying it disagreed with the proposed 3G patent arrangements.
"It"s very difficult to make a judgement whether Qualcomm will join," said Brian Kearsey, president of the UMTS IPA. But he added, "We think we will cover 65 to 75 percent of
the owners of essential IPR [intellectual-property rights]. The alternative is a free-for-all, as happened in GSM, with a multitude of bilateral agreements. That would make UMTS
technology very expensive to acquire."
Qualcomm could not be reached for comment at publishing deadline time.
"3G is no longer a pipe dream now that the major technological choices have been made within the framework of ITU IMT-2000. All that remains is to put in place a low-cost,
but fair, IPR regime," said Kearsey.
Kearsey said though it would not be ideal, it was possible one or two holders of essential IPR might choose to stay outside the 3G Patent Platform, at least initially, but that
would not invalidate the benefits the scheme could bring to those who choose to participate. It would then be up to companies to negotiate separately with the outside
companies to complete their portfolio of essential licenses.
The 3G Patent Platform proposal will be distributed to 3G equipment manufacturers and current mobile service operators for consideration during July and August.
Before the 3G patent scheme comes into effect on March 1, 2000, the proposal calls for a third-party licensing administration and patent-evaluation organization. The group will
be selected through a competitive tender process organized by a partnership formed by the relevant patent holders.
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Copyright (C) 1999 CMP Media Inc.
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