|Wireless Industry Leaders commit to framework for LTE technology IPR licensing|
Posted: 15-Apr-2008 [Source: LTE]
[LTE industry initiative intended to stimulate early widespread adoption of LTE technology throughout the communications and consumer electronics industry.]
London, UK -- Alcatel-Lucent, Ericsson, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks and Sony
Ericsson have announced a mutual commitment to a framework for establishing predictable and more transparent maximum aggregate costs for licensing intellectual property rights (IPR) that relate to 3GPP Long Term Evolution and Service Architecture Evolution standards (LTE/SAE). The companies invite all interested parties to join this initiative which is intended to stimulate early adoption of mobile broadband technology across the communications and consumer electronic industries.
The framework is based on the prevalent industry principle of fair, reasonable and nondiscriminatory (FRAND) licensing terms for essential patents. This means that the companies
agree, subject to reciprocity, to reasonable, maximum aggregate royalty rates based on the
value added by the technology in the end product and to flexible licensing arrangements
according to the licensors' proportional share of all standard essential IPR for the relevant
Specifically, the companies support that a reasonable maximum aggregate royalty level for LTE
essential IPR in handsets is a single-digit percentage of the sales price. For notebooks, with
embedded LTE capabilities, the companies support a single-digit dollar amount as the maximum aggregate royalty level. The parties believe the market will drive the LTE licensing
regime to be in accordance with these principles and aggregate royalty levels.
This framework balances the prevailing business conditions relevant for the successful
widespread adoption of the LTE standard, which continues its progress toward definitive
adoption by the industry in the applicable standards forums and organizations.
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