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Telecommunications Telco heavyweights agree to limit LTE IPR costs
Telecommunications Telco heavyweights agree to limit LTE IPR costs | Telco heavyweights agree to limit LTE IPR costs |
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| by Stuart Corner | |
| Tuesday, 15 April 2008 | |
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The framework is based on the 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 they are proposing a single-digit percentage of the sales price as being "a reasonable maximum aggregate royalty level for LTE essential IPR in handsets." For notebooks, with embedded LTE capabilities, the companies support a single-digit dollar amount as the maximum aggregate royalty. The parties believe the market will drive the LTE licensing regime to be in accordance with these principles and aggregate royalty levels.
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