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22 May 2019Patents

Autonomous vehicles to boost patent licence revenue: report

The development of connected and autonomous vehicles has “huge scope for patenting and earning revenue from licences” but on the flip-side there is also the potential for increased litigation when disputes arise, according to a new report.

Gowling WLG released “Owning The Road: The Impact of IP On The Future Of Mobility” in conjunction with UK Autodrive, an association supporting the introduction of self-driving vehicles in the UK, on May 1.

According to the report, the complex nature of the technology involved in autonomous vehicles paired with the range of suppliers and IP owners means that licensing activity is likely to become more prevalent in the industry.

A recent development highlighted by the report is the emergence of licensing platforms for automotive applications of technology. The platforms act as a marketplace for implementers looking to licence patents from multiple patent owners.

“In December 2017 for example, [licensing platform] Avanci entered into an agreement with BMW, which granted BMW a licence to use patents owned by a number of different patent owners,” the report said.

It continued: “Such platforms are unlikely to provide connected and autonomous vehicle owners with complete ‘freedom to operate’, but they do present the industry with an efficient way to ensure it is licensed under at least some key patents.”

One of the biggest challenges currently facing the automotive industry is the identification of which standardised technologies are likely to be adopted for use in connected and autonomous vehicles, to ensure a degree of interoperability between them, the report found.

Gowling WLG predicted that, initially, the incorporation of existing communications technologies (such as 3G, 4G and Wi-Fi) into autonomous vehicles is likely to be one of the primary areas being licensed under standard-essential patent agreements.

But, as new automotive-specific technologies develop, these will also need to be licensed. The question of what further standardisation will need to occur in the future must be kept under constant review as these new technologies develop, the report suggested.

Stuart Young, head of automotive at Gowling WLG, said that automotive and technology companies must become more prominent in discussions regarding the development of new technological standards and the respective automotive applications.

"Cooperation is essential in order for connected and autonomous vehicles to be effective and to achieve their long-term benefits,” Young said.

Young added: “Competitor firms need to be increasingly open to information sharing to ensure mechanical systems and connectivity solutions can interact safely and effectively. Companies must also have greater involvement in developing standards and sharing solutions to help to minimise the risk of being involved in patent litigation."

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