3G industry begins to unravel patent issues
By Maija Pesola in London
Published: January 8 2003 22:01 | Last Updated: January 8 2003 22:01
Efforts to accelerate the introduction of third generation mobile phone technology will receive a boost on Thursday as the 3G Patent Platform (3GPP), a company set up to evaluate and license the necessary patents, begins commercial operations.
Patents issues are one potential obstacle to the uptake of 3G technology. Approximately 100 companies claim they hold key 3G patents, and companies wishing to set up production of handsets face complex intellectual property rights negotiations and expensive cumulative royalty payments.
It is estimated that royalties could make up as much as 20 per cent of the cost of the handset, making it difficult to keep down prices and foster mass-market take-up.
The cost of intellectual property has been a concern particularly in China, the world's largest mobile market, as authorities deliberate over the adoption of 3G technology.
The 3GPP, a non-profit organisation set up by large mobile equipment makers and operators, aims to cut some of this cost and complexity by reducing the list of truly critical patents on which royalties must be paid.
"The start of these...patent evaluation, certification and licensing services should be regarded as a positive step in making 3G standardised terminals and infrastructure more affordable," said Yoshio Utsumi, secretary-general of the International Telecommunication Union.
However, Brian Kearsey, director general of 3GPP, warns that the process could be slow. Not only will the evaluation of each individual patent by engineers and intellectual property lawyers take several months, but many companies could be reluctant to submit their patents to scrutiny.
"Many companies will want to sit back and wait, and we are prepared for them to do that," said Mr Kearsey, "But I expect they will come to us in, say, 12 months time when financial difficulties in the industry increase. Because this project could bring a big reduction in their capital expenditure and substantially reduce the cost of the technology."
news.ft.com
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"..many companies could be reluctant to submit their patents to scrutiny.."
Yep.
"But I expect they will come to us in, say, 12 months time when financial difficulties in the industry increase. .. "
When financial difficulties increase? That's a pleasant prospect!
"...Because this project could bring a big reduction in their capital expenditure and substantially reduce the cost of the technology."
Provided the (dominant vendor-dominated) Platform leaves them with a claim.
Provided they have any interest in manufacturing product.
How many of the 100+ have Q/IDCC business models, and plan on allowing vendors to work for them, and skim their % off the top, with no additional risk?
What does it take?
As Q instructs through its actions: only one essential patent.
LOL! |
