|
DEPARTMENT OF JUSTICE WILL NOT CHALLENGE CONSORTIUM'S
PROPOSED RADIO FREQUENCY PATENT-LICENSING ARRANGEMENT
Proposal Could Result in Greater Access to Technology and Lower Costs
WASHINGTON, October 21, 2008 — The Department of Justice announced today that it will not challenge a proposal by a consortium of companies to jointly license patents needed to comply with standards for ultra high frequency radio frequency identification (UHF RFID) technology, which has a variety of uses including airline baggage tracking, retail product inventory and ticketing for events. The Department said that the proposal could result in cost savings and greater access to the technology, ultimately benefitting competition and consumers.
UHF RFID is a type of automatic identification and data capture technology used to identify objects automatically by using radio frequency waves to transmit and read information stored in an integrated circuit or chip on a label.
The Department's position was stated in a business review letter from Thomas O. Barnett, Assistant Attorney General in charge of the Department's Antitrust Division, to counsel for the RFID Consortium LLC. The RFID Consortium is made up of a group of companies that hold at least one essential UHF RFID patent. In its letter, the Department said that the proposed arrangement appears reasonably likely to yield procompetitive benefits as it limits the ability of the consortium's members to use their intellectual property rights to block or delay the implementation of the UHF RFID standards and affords savings in transaction costs for licensors and licensees.
"The proposed patent-licensing arrangement has the potential to speed up the commercialization of UHF RFID technology, to the benefit of competition and consumers, without harming competition or impeding innovation," said Barnett.
Under the consortium's proposal, an independent licensing agent will offer nonexclusive licenses to the consortium's portfolio of essential UHF RFID patents on reasonable and nondiscriminatory terms. An independent expert reviews the patents to ensure that the portfolio does not combine patents that would otherwise compete with each other. The owners of the patents will retain the rights to license their patents independently.
In addition, the consortium intends to implement a number of safeguards that appear reasonably tailored to minimize the risk of restricting competition between producers of UHF RFID products and the dampening of incentives to innovate, the Department said.
Under the Department's business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the Division will challenge the action under the antitrust laws.
A file containing the business review request and the Department's response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, Suite 1024, Liberty Square, 450 5th Street, NW, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the Business Review Procedure.
About the RFID Consortium LLC
The RFID Consortium LLC is a consortium of companies that 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.
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.
|
