EU OK To Patent Pact Gives Boost To 3G Equipment Makers
DOW JONES NEWSWIRES
BRUSSELS -- Beleaguered telecom equipment manufacturers received a boost Tuesday when European Union regulators allowed them to share patented technical information for third-generation mobile phones.
Analysts say the E.U. decision should help participating manufacturers reduce heavy start-up costs. High speed voice and data services are struggling to resolve technical and marketing problems to get off the ground.
"Improved access to patents is essential for the rapid introduction of 3G mobile services in Europe," the Brussels-based Commission said.
European companies Alcatel SA (ALA), France Telecom (FTE), Royal KPN NV (N.RKP) and Telecom Italia Mobile SpA (TI), Siemens AG (SI) and Sonera Corp (SNRA) will now be able to share technical information. Japanese partners in this so-called "3G Partner Platform Partnership" include Matsushita Communication Industrial Co. (J.MET), Mitsubishi Electric Corp (J.MIB), NEC Corp (J.NEC), Samsung Electronics Co Ltd (Q.SCQ) and Sony Corp. (SNE).
But the largest mobile phone equipment makers Nokia Corp. (NOK), LM Ericsson Telephone Co. (ERICY), Motorola Inc (MOT), and Qualcomm Inc (QCOM) are not part of the consortium. Since these manufacturers aren't participating, the Commission said the 3G Patent Platform partnership won't restrict competition.
The 3G Partner Platform Partnership streamlines the licensing procedure and cuts the level of fees paid by manufacturers for patented information.
At the moment, participants need to comply with one of five technical specifications laid down in the so-called IMT-2000 3G standard. Each of the five technical specifications has its own set of "essential patents."
"This is another sign of how Europe and Asia adopt a single technology and then promote it rather than letting the market fight it out like in the U.S.," says one telecom analyst.
While approving some sharing of information, the Commission has taken steps to ensure that a healthy amount of competition.
Participating companies must maintain separate arrangements for each type of 3G technology. They won't be allowed to combine all the patents into a single platform.
In addition, each licensing agreement must be limited to just patents - companies won't be allowed to share commercially sensitive information such as prices.
-By Victoria Knight ,Dow Jones Newswires; 322-285-0132; victoria.knight@dowjones.com
Updated November 12, 2002 10:06 a.m. EST |
