Why automakers hustling for patent hurdles. Know right here


Toyota, Nissan, Renault, Honda, Mercedes Benz, and Volkswagen are among the many main gamers within the auto business which might be thriving with in-car know-how patents.

By :
Reuters

|
Up to date on:
22 Sep 2022, 17:42 PM

Many carmakers are hustling to grab the in-car technology market pie.
Many carmakers are hustling to seize the in-car know-how market pie.

Over a dozen automakers, together with Toyota and Nissan, have signed up with a platform for patent licences from 51 tech firms, aiming to simplify entry to wi-fi know-how and keep away from expensive authorized battles.

(Additionally Learn: What occurred to Hyundai’s N mid-engine supercar. Know right here)

Conflicts have stemmed partially from completely different views amongst carmakers, suppliers and tech companies over who ought to shoulder the price of licensing.

Via unbiased licensing market Avanci, carmakers achieve entry to patents for 2G, 3G and 4G know-how from the likes of Finland’s Nokia, Sweden’s Ericcson and Taiwan’s Acer for all the pieces from navigation programs to sensors for automated driving.

Avanci costs a flat payment of $20 per automotive, elevated this month from $15 beforehand, with the cash distributed amongst patent holders. The brand new signings – which additionally embody Renault, Stellantis, and Honda – imply 80-85% of automobiles with 2G know-how or increased are licensed by the platform, Avanci vp Mark Durrant stated in an interview.

The mannequin permits carmakers to keep away from the battles over royalties that happened between smartphone makers corresponding to Apple and Samsung and telecoms firms, who negotiate one-on-one for licences. “The auto market is simply too splintered for it to be price it for patent homeowners to barter with every particular person participant,” stated an business supply, who declined to be named due to contractual agreements. “It is a matter of effectivity.

Mercedes-Benz, then Daimler, ended a years-long dispute over its patent use final yr with Nokia after being finally compelled to pay. Volkswagen was sued by Acer for utilizing its 4G know-how with out the suitable licence. The carmaker in March signed with Avanci, which covers Acer’s patents, as a way to settle.

Whereas suppliers have traditionally paid for patent licences in areas like engine design, tech companies would quite deal instantly with carmakers over telecoms patents, in response to an auto business supply with expertise of licensing negotiations.

“Often suppliers deal with patents within the improvement course of – telecoms is the one space the place they do not,” the individual, who declined to be named, stated. Avanci can also be working with firms on a brand new contract to cowl 5G patents, which might seemingly be costlier than the present patent portfolio.

First Printed Date: 22 Sep 2022, 17:42 PM IST



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