The battle over who will profit from 5G technologies is intensifying in several continents around the world. The scale and scope of this competition may be even greater, and even make the technology industry the first global game. The patent war within the scope is also very massive.
Automakers are currently in court with Qualcomm, Nokia, and other telecommunications developers. These companies do not see the need to pay billions of dollars to use the latter’s wireless standard technology. Companies such as Qualcomm will not only get 5G technology patent royalties from cars. It will also reap off wireless communication products that are planning for agriculture, medicine, home appliances, and other industries.
Joe Siino, President of Dolby Laboratories’ Patent Licensing Department, said: “As a result, many different types of companies have to find a way to make these deals, which has increased the problems we encounter with smartphones by a factor of 10″.
The value of standardized technology is a key issue in the smartphone war. This pits wireless technology developers such as Nokia, and Qualcomm against new entrants such as Apple and Microsoft. In the past ten years, the two sides have launched dozens of legal proceedings. In addition, the legal costs alone are in hundreds of millions of dollars.
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According to data from the United Market Research Company, the new disputes may be more profitable because the sales of equipment using 5G technology are expected to grow from $5.5 billion this year to $668 billion in 2026, an increase of more than 120 times. This technology is expected to change a range of products. From domestic to transport to even agriculture, it will be available.
5G is initiating more interaction between companies
In the past few weeks, the US and European courts have rejected allegations that the telecommunications company’s licensing policies violated antitrust laws and confirmed that they have the ability to restrict those who refuse to meet the licensing requirements to use their basic wireless technology. In cases filed by the European and American automotive industries, these rulings have already benefited telecommunications companies rather than current wireless standards.
Automakers usually leave patent issues to their component suppliers, who pay any necessary royalties and compensate automakers in litigation. Mercedes-Benz manufacturer Daimler is not happy with the way the telecommunications industry handles licensing. It believes that patent owners should deal with suppliers like everyone else.
Daimler and Ford Motor Company warned in a letter to the U.S. Federal Trade Commission (FTC) that the appeals court ruling in favor of Qualcomm. According to them, the ruling may “encourage the abuse of market power gained through cooperation in setting standards…”
Furthermore, Katie Coltart, a patent attorney in the London office of Kirkland & Ellis law firm, said: “More and more industries will begin to adopt technologies that must be standardized, which means that solving these problems will become more important. “
The worrying thing is that funding is an essential part of development. If there is no funding, there will be no new system to put into use. However, Mauricio Uribe, a patent attorney at the Knobbe Marten law firm in Seattle, said that too much funding means that manufacturers will raise prices or give up using the latest technology. Furthermore, he believes: “These two extremes are also not good for consumers.”