ITU-NGMN Joint Conference on “Licensing practices in 5G industry segments"

IPR, Licensing and royalties are always an interesting topic. In the end they decide what price a device would be sold at. If I put it simply, the cost of device = cost of manufacturing + marketing + sales and distribution + support and insurance + profit + IPR. The licensing cost is often added in the end as it could be applicable on the selling price of the device.

Ericsson willing to halve its royalty rate for 5G smartphones to $2.50 per device from $5 to accommodate needs of markets such as India, Nokia likely to charge $3.50 royalty per 5G handset, while Qualcomm will charge up to $16.25 in royalties. #IPR #Patenthttps://t.co/cgZQbiwFft

— Zahid Ghadialy (@zahidtg) January 19, 2019

The above tweet is interesting as it lists out the IPR costs by major patent holders. I wrote a post earlier detailing the 5G patent holders here. Since then this have moved on significantly. In addition to the royalty charged by the 5G patent holders (it also includes legacy technologies like 2G, 3G, 4G &Wi-Fi), there are patents for messaging, Codecs (seperate for audio / video), etc. To be fair it's a complex process. This is why I sometimes get shocked when I see 4G smartphones selling for £20 ($25).

Coming back to the conference, all the presentations are available on ITU page here.

Sylvia Lu, who wears many different hats including one for CW, UK5G and uBlox and a friend of 3G4G blog was one of the speakers at this conference. Here is a tweet on what she had to say about this event:

Beyond the hype is the licensing practices to ensure 5G adoption is FRAND and work for the new 5G ecosystem incl. the verticals for 5G to scale. Many thanks for the invitation @NGMN_Alliance @itu Delight to present on behalf of @ublox@UK_5G @cambwireless https://t.co/sjwZzkN2dD pic.twitter.com/kNtjPSuKzi

— Sylvia Lu (@SylviaLuUk) January 31, 2019

For those who may not know, FRAND stands for Fair, Reasonable, And Non-Discriminatory. Wikipedia has a nice article explaining it here.

NGMN Press Release on this conference mentions the following:

The Next Generation Mobile Networks (NGMN) Alliance has jointly organised and executed a successful conference on Licensing Practices in 5G Industry Segments with the International Telecommunication Union (ITU), bringing various experts from around the world together to discuss licensing practices and challenges of 5G.

The conference featured moderators and speakers from some of the biggest names in telecoms, including AT&T, Deutsche Telekom, NTT DOCOMO, Orange, Ericsson, Nokia and Microsoft. Also in attendance were key stakeholders of vertical industries, including Audi, Bosch, Panasonic and u-Blox, and patent pool administrators, namely Avanci, MPEG-LA, Sisvel and Via Licensing, who co-sponsored the event, the European Telecommunications Standards Institute (ETSI), the Japanese and the European Patent Offices, and the European Commission.

Focusing on the development of 5G and the Internet of Things (IoT), the conference facilitated sharing and discussing of present-day licensing practices and related issues across different industry segments.

A host of insightful sessions took place igniting an inclusive exchange on:

• Patent licensing practices with interactive discussions that focused on issues stakeholders need to be aware of.
• Sharing licensors’, licensees’ and pool administrators’ requirements on patent pools/platforms.
• Identifying proposed practices and conducts for licensors and licensees.
• Listing requirements for increasing transparency and assessing essentiality of Standard Essential Patents declared to Standards Developing Organisations.

“It’s great to notice that our joint ITU-NGMN conference has been such a success,” said Dr. Peter Meissner, CEO of NGMN. “Obviously, the 5G Eco-System is different. New use cases beyond mobile broadband - like massive IoT as well as highly demanding requirements from vertical industries on low latency, ultra-high reliability and security - are causing substantial network transformations. All these challenges have implications on the intellectual property of mobile network operators and across the different industry segments. Conferences like this are key in identifying IPR issues and exploring solutions for the enlarged eco-system.”

If you have any insights on this topic, or just any comment in general, feel free to add them as comments below.

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