Top network equipment suppliers reached agreement for licensing intellectual property rights (IPR) that relate to 3GPP Long Term Evolution and Service Architecture Evolution standards (LTE/SAE). The parties include Alcatel-Lucent, Ericsson, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks and Sony Ericsson.
The framework is based on the prevalent industry principle of fair, reasonable and non-discriminatory (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 product category.
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.
The companies said their 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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- In May 2007, a group of world leading telecom technology manufacturers and network operators comprised of Alcatel-Lucent, Ericsson, France Telecom/Orange, Nokia, Nokia Siemens Networks, Nortel, T-Mobile, and Vodafone, launched a joint initiative aimed at driving high performance mobile broadband networks based on 3GPP Release 8 “Long Term Evolution / System Architecture Evolution” (LTE/SAE) specifications. The LTE/SAE Trial Initiative targets mobile broadband peak data rates exceeding 100 Mbps. In line with 3GPP requirements, LTE/SAE aims to provide a mobile broadband service that outperforms both 3GPP Release 6 HSPA, as well as current fixed line DSL data rates while maintaining and extending the highly successful mobility and coverage benefits of 3GPP networks such as GSM. Other vendors have subsequently joined the initiative.