Breaking News
Investing Pro 0
Free Webinar - What Is a Gold IRA? Fees, Advantages, and Risks - December 7, 2022 | 01:00PM EST Enroll Now

Automakers tackle patent hurdle in quest for in-car tech

Stock Markets Sep 21, 2022 03:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A view of cars on the road during rush hour traffic jam, while California's government authorities are expected to put into effect a plan to prohibit the sale of new gasoline-powered cars by 2035, according to local media, in San Francisco, California, U.
 
RENA
+0.49%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
-1.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
VOWG_p
-0.97%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NOK
-1.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
005930
-0.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DDAIF
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Victoria Waldersee and Supantha Mukherjee

STOCKHOLM/BERLIN (Reuters) - Over a dozen automakers including Toyota and Nissan (OTC:NSANY), have signed up with a platform for patent licences from 51 tech companies, aiming to simplify access to wireless technology and avoid costly legal battles.

Conflicts have stemmed in part from different views among carmakers, suppliers and tech firms over who should shoulder the cost of licensing.

Through independent licensing marketplace Avanci, carmakers gain access to patents for 2G, 3G and 4G technology from the likes of Finland's Nokia (NYSE:NOK), Sweden's Ericcson and Taiwan's Acer for everything from navigation systems to sensors for automated driving.

Avanci charges a flat fee of $20 per car, increased this month from $15 previously, with the money distributed among patent holders. The new signings - which also include Renault (EPA:RENA), Stellantis, and Honda - mean 80-85% of cars with 2G technology or higher are licensed through the platform, Avanci vice president Mark Durrant said in an interview.

The model allows carmakers to avoid the battles over royalties that took place between smartphone makers such as Apple (NASDAQ:AAPL) and Samsung (KS:005930) and telecoms companies, who negotiate one-on-one for licences. "The auto market is just too splintered for it to be worth it for patent owners to negotiate with each individual player," said an industry source, who declined to be named because of contractual agreements. "It's a matter of efficiency.

Mercedes-Benz, then Daimler (OTC:DDAIF), ended a years-long dispute over its patent use last year with Nokia after being eventually forced to pay. Volkswagen (ETR:VOWG_p) was sued by Acer for using its 4G technology without the appropriate licence. The carmaker in March signed with Avanci, which covers Acer's patents, in order to settle.

While suppliers have historically paid for patent licences in areas like engine design, tech firms would rather deal directly with carmakers over telecoms patents, according to an auto industry source with experience of licensing negotiations.

"Usually suppliers handle patents in the development process – telecoms is the one area where they don't," the person, who declined to be named, said. Avanci is also working with companies on a new contract to cover 5G patents, which would likely be more expensive than the current patent portfolio.

Automakers tackle patent hurdle in quest for in-car tech
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email