To: pass pass who wrote (23626 ) 11/16/1997 1:01:00 AM From: Steve Rolfe Read Replies (1) | Respond to of 61433
An article I stumbled across on ZDNet... You may already be familiar with all of this, but if not... Licensing Rights May Delay 56Kbps Modem Standard Manufacturers Continue To Pledge Free Upgrades by Keith Kirkpatrick Originally published in the December 1997 issue Since last spring, the modem market has been muddled by the rivalry between two incompatible 56Kbps standards. Now it seems technology-ownership squabbles among modem suppliers could slow the introduction of interoperable 56Kbps modems, even if the International Telecommunications Union (ITU) approves a single standard. The ITU met in September to draft a preliminary proposal for a common 56Kbps standard, with hopes to release a final specification by January 1998. But analysts say that once a standard is set, licensing issues will remain a thorny issue for hardware vendors, who will need to cough up cash for each of piece of technology included in the standard. For example, 3Com Corp. has agreed to license its x2 technology to other vendors for a one-time fee of $100,000. But a former Bell Labs engineer, Brent Townshend, says that both current 56Kbps standards--x2 and K56Flex, championed by Rockwell International and Lucent Technologies--use technology he invented, and he wants to be compensated. Although 3Com has agreed to pay Townshend a licensing fee of $1.25 per client modem and $9 per port, Lucent and Rockwell are likely to fight Townshend's claims in court. Lisa Pelgrim, a senior analyst with Dataquest, says it's unlikely that any standard-setting will be affected by legal action. "In all modem standards, there are tons of little pieces of technology going into it," Pelgrim says. "[Technology ownership] lawsuits have happened over smaller issues." Despite the controversy and market confusion, Gary Arlen, president of Bethesda, Md.-based Arlen Communications, says he's impressed at the relatively strong sales to date of both x2 and K56Flex modems. A key reason for this success, Arlen says, is that virtually all modem manufacturers have promised their customers free upgrades once an ITU standard is set. "I am amazed at the number of 56Kbps modems that are moving," Arlen says. "What's so [ironic] is that we're talking about high speed, yet the standards and regulations are what's slowing it down."