5G Patents Progress

More than 23,500 patents have been declared essential to the GSM & 3G as shown in the picture above. I am assuming this includes 4G as well. Anyway, its been a while I looked into this subject. The last time I was looking, 4G patent pools were beginning to form.

For LTE, indeed there is no one-stop shop for licensing. The only company that has tried is VIA Licensing, with their patent pool, but they don’t have licenses for the big players like Ericsson, Qualcomm, Huawei, ZTE, Samsung, etc. The same will probably apply for 5G.

This old picture and article from Telecom TV (link) is an interesting read on this topic.

This official WIPO list shows ZTE, Huawei, and Qualcomm at the top of the list for international patent filers worldwide in 2016 [PDF].

Back in 2015, NGMN alliance was also looking for creation of some kind of patent pool but it probably didn't go anywhere (link)

(Can't recall the source for this one) In March, Ericsson announced plans to license 5G for $5 per device and possibly as low as $2.50 in emerging markets. In November, Qualcomm announced plans to license 5G IP at the same rates established by the NDRC for 4G/LTE phones sold into China: 2.275% for single mode essential patents / 4.0% for the entire portfolio or 3.25% for multimode essential patents / 5.0% for the entire portfolio. All rates are based on the wholesale price of the phone.

Qualcomm also announced that the previously undisclosed $500 price cap will apply to all phones. Qualcomm also announce a rate of less than $5 for 5G for automotive applications and $0.50 for NB-IoT based IoT applications.

Ericsson has filed patent application for its end-to- end 5G technology. Ericsson has incorporated its numerous 5G and related inventions into a complete architecture for the 5G network standard. The patent application filed by the leading telecom vendor combines the work of 130 Ericsson inventors.

Dr. Stefan Parkvall, Principal Researcher at Ericsson, said, “The patent application contains Ericsson’s complementary suite of 5G inventions.” Stefan added, “It contains everything you need to build a complete 5G network. From devices, the overall network architecture, the nodes in the network, methods and algorithms, but also shows how to connect all this together into one fully functioning network. The inventions in this application will have a huge impact on industry and society: they will provide low latency with high performance and capacity.

This will enable new use cases like the Internet of Things, connected factories and self-driving cars.” Ericsson is involved with leading mobile operators across the world for 5G and Pre-5G research and trials. The patent application is likely to further strengthen its position in the 5G race.

More details on E/// 5G patents on their official website here.

Mobile world live has some good details on Qualcomm 5G NR royalty terms.

Smartphone vendors will have to pay as much as $16.25 per device to use Qualcomm’s 5G New Radio (NR) technology under new royalty guidelines released by the company.

Qualcomm said it will implement a royalty rate of 2.275 per cent of the selling price for single-mode 5G handsets and a higher rate of 3.25 per cent for multi-mode smartphones with 3G, 4G and 5G capabilities.

So for a $200 multi-mode device, for instance, Qualcomm noted a vendor would have to pay $6.50 in royalties per device. Royalties are capped at a $500 device value, meaning the maximum amount a smartphone vendor would have to pay would be $16.25 per handset.

The company added it will also offer access to its portfolio of both cellular standard essential patents and non-essential patents at a rate of 4 per cent of the selling price for single-mode devices and 5 per cent for multi-mode devices.

Qualcomm’s rates are notably higher than those announced by Ericsson in March. The Swedish company said it would charge a flat royalty fee of $5 per 5G NR multimode handset, but noted its fee could go as low as $2.50 per device for handsets with low average selling prices.

The official Qualcomm 5G royalty terms [PDF] are available here.

Further reading:

• Ericsson Tries to Avoid Patent War by Publishing Rates for 5G - Bloomberg
• Qualcomm to charge up to $16.25 in royalties for every 5G phone, more than Ericsson’s $5/phone - Fierce Wireless

Thanks to Mike Saji for providing inputs on 4G patent landscape. Thanks to Keith Dyer for interesting tweets on this topic.