The RFID Consortium Portfolio License covers RFID reader and label products made in accordance with the UHF RFID Standards. The UHF RFID Standards are the standards adopted by EPCglobal and ISO (International Organization for Standardization), 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 reviewed and determined to be essential to make, use, or sell a reader product or label product that complies with the UHF RFID standard.
By offering a license to this portfolio of patents, the RFID Consortium seeks to facilitate widespread adoption of UHF RFID technology. While RFID technology potentially offers manufacturers, retailers, and consumers significant 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. In this context, the Patent 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.
Benefits to Licensees
The RFID Consortium provides an efficient way for a licensee to obtain a single license under all of the RFID Consortium members’ essential UHF RFID patents. Through the RFID Consortium, a licensee can conveniently access a large and growing portfolio of essential patents, and avoid the need to negotiate individual agreements and royalty rates.
Benefits to Patent Owners
The RFID Consortium’s Patent Portfolio License offers an easy way to monetize RFID patents through a simple and efficient process that lowers transaction costs and encourages the adoption of UHF RFID technology on a reasonable and nondiscriminatory basis. 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.
Benefits to Industry
The Patent Portfolio License offered by the RFID Consortium is designed to make it easier for vendors to save time and money in offering UHF RFID products, facilitating 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.
Terms and Conditions of the Patent Portfolio License
The Patent Portfolio License grants a license under all of the essential UHF RFID patents held by participating patent holders for an initial term of five (5) years that is renewable for successive five-year terms until the expiration of the patents.