Three separate companies are steadily recruiting intellectual property holders into patent pools for LTE (Long-Term Evolution) technology, initiatives intended to get more manufacturers building gear for the fast network.
Patent pools are groups of patent holders that agree to licensing terms. Ideally, a big patent pool allows vendors to buy one licence that covers most essential parts of a given technology. This is quicker, more transparent and more predictable than making individual deals, proponents say. Pools are used for video standards such as MPEG-4 but were not adopted widely in 3G (third generation) mobile technology, the predecessor to LTE.
Typically, patent pools are managed by specialised companies that don't own intellectual property themselves. They set up licensing programs, collect licence fees and distribute the proceeds to member companies. In the case of LTE, three of these - Sisvel, Via Licensing and MPEG LA - are vying to form a pool that represents a critical mass of LTE patents.
Sisvel, an Italian company that also operates a patent pool for MPEG audio technology, this week claimed it had brought together 32 significant LTE patent holders, the largest number of any of the three patent-pool companies. "With the kind of scale that we're talking about here... the pool could really be close to a one-stop shop," said Sean Corey, IP counsel for Sisvel US.
Meanwhile, MPEG LA says about 15 companies are working with its pool program, but added that they include some of the major players in terms of patents and market share. "There's a critical mass there," said Bill Geary, vice president of business development at MPEG LA. Via Licensing says 24 patent holders were actively discussing licensing terms and conditions at its last meeting of stakeholders, he said.
Formation of the pools is still at an early stage, with none of them yet operating and no patent holders publicly announcing their affiliations. But while all three say they are months away from operation, Via claims it has the most aggressive programme. After kicking it off in January, the company could get its patent pool running in as little as 12 months, said John Ehler, Via Licensing's director of wireless programs. MPEG LA has been working on its own pool for about two years and hopes to have it in operation next year, Geary said. Sisvel's Corey said it takes between 18 months and two years to get a program going.
All three companies want to have the biggest pool, to make it easy for vendors large and small to licence everything they need. In this way, patent pooling should help to accelerate adoption of LTE, the patent-pool promoters said. It could also attract a broader range of companies, such as consumer electronics makers and embedded device manufacturers, to the fast networks.