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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, 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,
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 and
Samsung 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, ended a years-long dispute over its
patent use last year with Nokia after being eventually forced to
pay. Volkswagen 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.
(Reporting by Victoria Waldersee and Supantha Mukherjee; Editing
by Emelia Sithole-Matarise)
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