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ABOUT THE PROPOSED RFID PATENT LICENSING
Q: Where do I obtain further information?
Further information can be obtained by sending an email to
UHF-RFID@vialicensing.com or by contacting Via Licensing.
Q: What types of patents and technology will be covered by the license?
The portfolio license will cover RFID reader and label products developed in conformity with the UHF RFID standards announced by EPCglobal and the International Standards Organization (ISO). A patent will be included if it is essential to make, use, or sell a reader product or label product that complies with the applicable UHF RFID standard.
The UHF RFID standards covered include the EPCglobal Air Interfaces Standards Generation 1 (Class 0, Class 0+ and Class 1) and Generation 2 (Class 1); and ISO/IEC 18000-Part 6 (including Amendment 1) and the communications and interface protocols and conformance specifications referred to in those documents.
Q: What's the benefit to patent owners?
The portfolio license offers a simple and efficient process for licensing patent-protected technology to multiple parties. The arrangement is non-exclusive. Patent owners who join the 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.
Q: What's the benefit for licensees?
The RFID Consortium will offer licensees a single source for licensing essential RFID patents, instead of individual negotiations and payments. All companies remain free to negotiate license agreements for patents independently, including licensing rights for technology that is not "essential." The RFID Consortium will provide an additional way for a licensee to obtain needed licenses to essential patents.
Q: Why is the RFID Consortium appropriate for the RFID industry?
The RFID Consortium seeks to facilitate widespread adoption of UHF RFID technology. RFID technology potentially offers manufacturers, retailers, and consumers enormous benefits. Patents in this technology are held by multiple owners. Such a "patent thicket" can impede commercialization and market adoption of the technology. The portfolio license can help by decreasing licensing transaction costs, potentially reducing litigation risks and thereby accelerating the introduction of products.
Q: What's the benefit, if any, to end-users?
The portfolio license from the RFID Consortium should lead to more available products from multiple vendors. 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.
Q: When will the licenses be available?
In October, 2006, the RFID Consortium announced a patent call asking for interested parties to submit patents for consideration in the initial pool. An independent patent expert reviews the submissions and identifies the "essential" patents. The interested parties will then enter into appropriate agreements and make available a portfolio license. We expect the portfolio license will be available for licensees in 2007.
Q: What if a company wants to license some of the patents before then?
The proposed patent licensing agreement is non-exclusive, so companies may make individual agreements with patent holders as needed.
Q: If anyone can license a patent directly from the owner, why is the RFID Consortium needed?
The complexity of clearing patent issues through multiple UFH RFID patent holders (many of whom potentially hold multiple, potentially blocking, patents) has the potential to slow the development of the market. 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.
Q: How will the relative value of contributed patents be assessed?
There are many different business models that have been used in the past by companies that have offered other portfolio licenses. Here, as in those cases, the selection of a business model for setting the relative value of patents will be considered by the parties that submit patents
Q: What is the expected royalty?
This will be determined by the Consortium once the patent portfolio has been assessed. It will be a RAND royalty, that is, reasonable and non-discriminatory.
Q: Is it possible that a company could participate as a licensee while not contributing its own patents to the consortium?
Yes. It is expected that there will be numerous companies who do not have essential UHF RFID patents but who will be interested in obtaining a license. Licenses will be made available on reasonable and non-discriminatory terms to all interested licensees.
ABOUT THE RFID CONSORTIUM
Q: Why was the RFID Consortium formed?
The RFID Consortium was proposed to provide end users and manufacturers with access to patents that are essential for RFID product interoperability in the supply chain while offering an efficient licensing approach for holders of those patents.
Q: What does the RFID Consortium offer today?
The consortium is still in formation. It is offering all interested holders of essential patent rights the opportunity to participate in the formation and continued operation of the Consortium. This is the beginning of a process that could, and should, lead to a valuable and beneficial entity being created.
Q: Who are the members of the RFID Consortium?
The RFID Consortium members include:
• 3M Innovative Properties Co.
• HP
• France Telecom
• LG Electronics
• Motorola (Symbol)
• ThingMagic LLC
• Zebra Technologies Corporation
Q: How do I submit a patent for consideration?
VIA Licensing, the outside license administrator for the RFID Consortium can provide all of the materials necessary for submitting patents. Contact Via Licensing Corporation (UHF-RFID@VIAlicensing.com) for more information and to request a copy of the patent submission packet.
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