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RFID CONSORTIUM LLC ESTABLISHED
Wilmington, Delaware, November 27, 2007 - Seven companies from around the world today announced they have organized the RFID Consortium LLC to jointly license essential ultra-high frequency radio frequency identification (UHF RFID) patents: 3M Innovative Properties Co. [NYSE: MMM]; France Telecom [NYSE: FTE]; HP [NYSE: HPQ]; LG Electronics [Korea Stock Exchange: 066570, London Stock Exchange: LGLD]; Motorola [NYSE: MOT]; ThingMagic, Inc.; and Zebra Technologies Corp. [NASDAQ GS: ZBRA].
These companies have formed the RFID Consortium LLC to license patents that are essential to making products supporting the UHF RFID Standards announced by EPCglobal Inc. and ISO/IEC. "Our licensing arrangement helps companies in the RFID industry avoid high transaction costs, blocking positions, and costly litigation which might otherwise occur," explained Dave Poole, a spokesperson for the RFID Consortium LLC and former V.P. Patents and Technology for Zebra Technologies Corp. "We believe this will provide a substantial benefit to both the RFID industry and the participating patent holders."
"This licensing arrangement will provide a convenient and cost-effective way for any interested company to obtain patent licenses required to implement the UHF RFID Standards," said Lem Amen, Vice President and General Manager of 3M Track and Trace Solutions. "This will benefit consumers by encouraging competition and speeding adoption of the technology."
"We've come a long way since our initial patent call late last year," said Poole. "We've brought together holders of patents essential for UHF RFID products; we've agreed on the definitive terms of the licensing arrangement; and we've established an LLC to manage the arrangement." The Consortium has requested a business review from the United States Department of Justice. After that review is concluded, the Consortium expects to offer licenses to firms interested in making, using, or selling UHF RFID readers, labels, or chips used in labels.
"The signing of the definitive agreements is a substantial accomplishment and sends a clear signal that the industry is committed to expanding availability and use of RFID technology," said Poole. "We are continuing to work with all segments of the industry and expect more companies to join these industry leaders."
The RFID Consortium is encouraging all companies with essential patents to join the Consortium and include their patents in the licensing arrangement. Under the joint licensing arrangement, all patents essential to the practice of the UHF RFID Standards owned by participants in the licensing arrangement will be made available to interested companies via a single license on fair, reasonable and non-discriminatory terms.
Joint licensing arrangements encourage wide-spread adoption of a standard by providing a convenient and cost-effective way to obtain licenses to the patents essential to practice the standard. Reducing these transaction costs benefits both the patent owners and the consumer.
"We're excited about the potential to accelerate market acceptance of the RFID standards by bringing together a substantial portfolio of essential patents," said Poole. "We look forward to completing the process and beginning to offer licenses."
The joint licensing arrangement will be administered by Via Licensing Corporation. Bell, Boyd & Lloyd LLP (www.bellboyd.com) attorney Christopher A. Bloom has acted as counsel to the RFID Consortium, and William F. Dolan of Jones Day (www.jonesday.com) has acted as special antitrust counsel to the RFID Consortium.
About the RFID Consortium LLC
The RFID Consortium LLC is a consortium of companies which own radio frequency identification (RFID) patents. The goals of the Consortium are to promote rapid adoption of UHF RFID in accordance with international standards by facilitating easier access, by manufacturers and customers alike, to essential UHF RFID patents and to provide patent owners the opportunity to receive fair compensation for those patents, all at a reasonable cost to the end-user. The UHF RFID standards as announced by EPCglobal Inc. and ISO/IEC include the EPCglobal Generation 1 (Class 0, Class 0+ and Class 1) and Generation 2 (Class 1), and the ISO/IEC 18000-Part 6c (including Amendment 1) parameters for air interface communications at 860 MHz to 960 MHz for radio frequency identification and the communications and interface protocols and conformance specifications referred to in those documents. For more information about the RFID Consortium LLC, please visit www.rfidlicensing.com.
To request information for participating in the joint licensing program, e-mail UHF-RFID@vialicensing.com.
Media Contacts:
Larry Bouchie, KMC Partners for the RFID Consortium, 617-758-4192, larry@kmcpartners.com
Certain statements in this press release, including the potential acceleration of market acceptance of the RFID standard, the benefits of joint licensing programs in general and the benefits of the proposed UHF RFID patent licensing program in particular, the greater adoption of standards through joint licensing programs, and the benefits of RFID capable products, are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties actual results may differ materially from those anticipated. The following important factors could cause actual results to differ materially from those in the forward-looking statements: risks associated with licensing industry standards technologies; market acceptance of RFID devices; rapid changes in RFID technologies; risks associated with the development of markets for RFID products; and other risks detailed in Securities and Exchange Commission filings and reports of the companies listed in this release. Any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise is hereby disclaimed.
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