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Avanci offers licensing model for IoT connectivity

Steve Rogerson
September 22, 2016
Avanci has launched what it claims is the first marketplace for licensing patented wireless technology to the IoT. The Dallas-based company, founded this year, is bringing together standard-essential wireless patents from industry leaders, making them available with a single licence to IoT device manufacturers who are adding connectivity to their products.
With billions of connected devices coming online each year, the IoT is enabling an entirely new economy of products. For many manufacturers entering the IoT space, it can be cumbersome to determine which patent licences are needed to enable connectivity and what is a fair price.
Avanci is streamlining this process by offering a single licence to patents owned by many companies on fair, reasonable and non-discriminatory terms. Companies can expect a transparent, flat-rate price for each device that will vary based on the value the technology brings to the device.
“Since we began in April, we have received an overwhelmingly positive response from both IoT device manufacturers and patent owners to our streamlined licensing, and Avanci will quickly add more of these companies to our marketplace in the months ahead,” said Kasim Alfalahi, founder and chief executive officer of Avanci. “With Avanci, something that would require time and resources to negotiate with many technology holders can now be done in one place, with one licence, allowing IoT manufacturing companies access to the most advanced wireless technology in the world while they focus on bringing new products to the market.”
This open platform can accelerate the process of securing technology rights and time to market for IoT devices. Companies seeking to add connectivity to their new products and companies with a portfolio of standard-essential wireless patents to share can join the marketplace.
Avanci will initially focus its licensing efforts on 2G, 3G and 4G cellular technologies for connected cars and smart meters with plans to expand to other IoT product areas. The licence for the IoT industry provides access to the entire standard-essential cellular patent portfolio innovators, including Ericsson, Qualcomm, InterDigital, KPN and ZTE, own today, as well as any such patents that they may develop or acquire during the term of the licence.
“The number of companies incorporating connectivity in their business models is rapidly increasing,” said Gustav Brismark, chief intellectual property officer at Ericsson. “By having efficient access to essential wireless technology and leveraging the global network, these companies can reduce time to market and reach scale faster. Avanci’s licensing platform enables the adoption of our essential wireless technology among IoT device manufacturers, accelerates the development of the internet of things and the global uptake of LTE for IoT.”
Alex Rogers, president of Qualcomm Technology Licensing, added: “At Qualcomm, we have been expanding our wireless technology beyond mobile into new industries in the world of internet of things. Our technology is helping IoT providers across market segments – from homes to cars, cities and wearables – redefine what’s possible. We are pleased to share our cellular patented technology through Avanci to streamline essential patent licensing for certain IoT applications and accelerate growth for the IoT industry.”
And ZTE CIPO Spencer Shen said: “ZTE is excited to see the implementation of wireless technology outside the traditional communications industry. With more than a decade of technology contribution, we believe a healthy circle of innovation of new IoT connected devices and investment in future technologies is the best way to fuel more innovation within the ecosystem. We are encouraged by Avanci’s unique approach to licensing connectivity and the role it will play in driving the IoT industry.”