The Portfolio License covers RFID reader and label products made in accordance with the UHF RFID standard adopted by EPCglobal and the International Standards Organization (ISO), respectively as the EPCglobal Air Interfaces Standard Generation 1 (Class 0, Class 0+ and Class 1) and Generation 2 (Class 1) and ISO/IEC 18000-Part 6c (including Amendment 1), and includes the communications and interface protocols and conformance specifications referred to in those documents.

The portfolio includes patents an independent evaluator has reviewed and determined to be essential to make, use, or sell a reader product or label product that complies with the UHF RFID standard.

The RFID Consortium seeks to facilitate widespread adoption of UHF RFID technology. RFID technology potentially offers manufacturers, retailers, and consumers enormous benefits. Patents on different aspects of this technology are held by multiple owners. Such a “patent thicket” can impede commercialization and market adoption of the technology. The portfolio license can promote adoption of UHF RFID by decreasing licensing transaction costs while also reducing the overall level of IP risk associated with the technology.

The Consortium’s portfolio license offers an easy way to monetize RFID patents through a simple and efficient process that lowers transaction costs, encourages the adoption of UHF RFID technology, and ensures compliance with RAND obligations. The arrangement is nonexclusive, and patent owners who join the RFID Consortium remain free to license their patents in any manner they choose, and may enter into individual license agreements with any party on any terms they choose.

The Consortium provides an efficient way for a licensee to obtain a single license under all of the Consortium members’ essential UHF RFID patents. Through the Consortium, a licensee a can conveniently access a large and growing portfolio of essential patents, and avoid the need to negotiate individual agreements and royalty rates.

The portfolio license from the RFID Consortium should make it easier for vendors to save time and money in offering UHF RFID products, leading ultimately to faster RFID implementations. Patent licensing arrangements similar to the one proposed by the RFID Consortium have helped promote the rapid commercialization of new technologies now used by consumers around the world, including DVD and MP3 standards that have flourished in the consumer electronics field.

As of August 31, 2010, portfolio licenses are now available through Sisvel US.

The portfolio license grants a license under all of the essential UHF RFID patents held by participating patent holders for an initial term of 5 years that is renewable for successive 5-year terms until the expiration of the patents.
Standard royalty rates for UHF RFID label products range as low as $2.30 per one thousand units (depending on volume). For UHF RFID readers, standard rates range as low as $7.00 per unit (depending on volume).
In addition, those who act by March 2011 can take advantage of a special early adopter discount to lock in the lowest available royalty rates for a five-year term. This limited-time discount brings royalty rates for UHF RFID label products under the program down to $.80 per one thousand units, and the rates for UHF RFID readers down to as low as $5.00 per unit (depending on volume).
For additional information, including requests for a copy of the portfolio license, please contact uhf-rfid@sisvel.com or call +1 703-820-0626.

The Consortium’s portfolio license is nonexclusive, so companies may make individual agreements with patent holders. The current list of Consortium members includes: 3M; ETRI; France Telecom; HP; LG; Motorola; ThingMagic; and Zebra Technologies.

The complexity of clearing patent issues through multiple UFH RFID patent holders (who may hold multiple, potentially blocking, patents) could slow the adoption of the technology in the marketplace. The portfolio license approach will make it much easier for licensees to obtain needed patent rights, adhere to license requirements, and to compensate patent holders. Equally important, it will reduce the burden that patent holders face in identifying potential licensees, negotiating deals, and collecting royalties.

Yes. The Consortium remains open to new licensors and, in fact, there are financial incentives still available to those who join soon.

No. Because there are governance benefits associated with joining the LLC, each participant is expected to become a member under the Consortium’s Limited Liability Company Agreement, but it is not required.