Automakers tackle patent hurdle in quest for in-car tech

Acer

21/09/2022 06:00

By Victoria Waldersee and Supantha Mukherjee
    STOCKHOLM/BERLIN, Sept 21 (Reuters) - Over a dozen
automakers including Toyota  7203.T  and Nissan  7201.T , 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  NOKIA.HE , Sweden's Ericcson
 ERICb.ST  and Taiwan's Acer  2353.TW  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  RENA.PA ,
Stellantis  STLA.MI , and Honda  7267.T  - 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  AAPL.O  and Samsung  005930.KS  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  MBGn.DE , then Daimler, ended a years-long
dispute over its patent use last year with Nokia after being
eventually forced to pay.
    Volkswagen  VOWG_p.DE  was sued by Acer  2353.TW  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. urn:newsml:reuters.com:*:nL5N2VB4AH
    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)
 ((Victoria.Waldersee@thomsonreuters.com;))