Apple and BMW urge EU to rethink patent stance
Apple, Volkswagen and BMW are among major brands that have reportedly warned EU regulators not to adopt patent licensing fee guidelines favoured by Qualcomm and Ericsson.
In a letter to European Commission president Jean-Claude Juncker and two of his colleagues, lobbying group the Fair Standards Alliance (FSA) said the commission risks jeopardising Europe’s potential to be a “world leader”.
The October 16 letter, seen by Reuters, is in response to concerns that the EU is preparing to adopt a patent fee model used by Qualcomm which is based on how much value technology adds to a product.
This means that the same patent could cost more depending on what technology it is licensed for.
Qualcomm’s model is backed by Ericsson and Nokia, while Apple and other FSA members favour a fixed-fee approach.
Earlier this year Apple sued Qualcomm in China claiming the company had abused its market position by trying to squeeze more money from companies that use its technologies.
Qualcomm said at the time it was willing to defend its business practices in court.
The commission’s patent licensing proposals, which will not be legally binding, are expected to be published in November. The commission has yet to reveal its final recommendations but is reportedly in favour of Qualcomm’s preferred model.
The letter, sent to Juncker, competition commissioner Margrethe Vestager and industry commissioner Elzbieta Bienkowska, said: “The European Commission risks jeopardising Europe’s potential to be a world leader in the internet of things by supporting a patent licensing system which rewards a few entrenched patent-holding companies at the expense of innovative companies and ultimately consumers.”
Volkswagen and BMW highlighted particular concern for the automobile industry, where cars increasingly incorporate wireless technologies.
“We are now faced with components that are not licensed, and for which we receive claims or requests to engage in licensing discussions, even though these technologies are completely implemented at the component or module level,” the letter said.
“We do not have the applicable technical expertise to fully evaluate whether a licence is needed or what a fair price for such technology might be.”
A spokesperson for the commission said that to make the licensing framework work and play a lead role in global technological innovation, “all actors need to work together to strike a balance between patent holders and implementers”.
Other FSA members include Google, Intel, Dell, Hyundai, Tesla and Cisco.
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