Avanci streamlining 5G patent pathways

As connected vehicles are increasingly a part of daily life in China, Avanci, a patent platform founded in Texas, the United States, is inviting Chinese automakers to join its 5G program.

Parts suppliers, rather than automakers, usually pay mobile technology companies such as Nokia and Qualcomm for the use of their patents, but a two-year dispute between Nokia and Daimler (later rebranded Mercedes Group) over patent infringement has spotlighted the services of companies like Avanci.

Established in 2016, Avanci serves as a bridge between licensors of standard essential patents such as Nokia, offering a package to those who need it, like Mercedes. In this way, licensors can collect their royalties in an easier manner and licensees are spared the trouble of lengthy negotiations, price increases, or possible disputes.

"We simplify patent licensing by reducing complexity, increasing efficiency and ensuring fairness for licensors and licensees," Laurie Fitzgerald, senior vice-president of Avanci, said in an interview with China Daily last week.

Under the terms of the 4G licensing program, automakers can use the patented technology as long as they pay Avanci a per-vehicle fee of no more than $20.

The company said more than 150 million vehicles from around 100 automotive brands are covered by its 4G vehicle license, including those in Europe, the United States, Japan and South Korea.

Based on the success of its 4G licensing program, Avanci launched its 5G program in August, which it said already includes over 60 licensors, covering the vast majority of essential cellular technologies. It charges $32 per vehicle, with an early bird price of $29. So far, BMW, Mercedes and Hyundai have joined the program. Chinese automakers have yet to show much interest, although there are already some Chinese 5G licensors, including Huawei, China Mobile, ZTE and TCL.

Fitzgerald said she is optimistic Avanci will eventually see growth on the licensee side in China, adding: "We hope to see more Chinese patent owners join. As for Chinese potential licensees, of course we'd like to see increased participation."

China is the world's largest market for smart vehicles. As early as 2020, Huawei teamed up with 18 Chinese automakers, including SAIC, BYD and Great Wall Motor, to facilitate use of 5G technology in their vehicles.

Statistics from the Ministry of Industry and Information Technology show that more than 42 percent of new vehicles sold in the first half of this year had some form of advanced driving-assist features, up from 34 percent in 2022.

TechInsights forecasts that over the next five years the share of 5G connected vehicles globally will grow to over 50 percent.