Increasing Monetization Activities Exploiting LTE Patents

Recent TechIPm’s research for patents relate to 4G LTE standard found increasing monetization activities exploiting LTE standard related patents.  LTE patents analysis for the market leaders among LTE UE (cellular phones, smart phones, PDAs, mobile PCs, etc.) and base station (eNB) product manufactures and innovators identified more than 1600 issued patents hold by 42 entities in the US as of March 31, 2015 (ref. http://www.techipm.com/alexdb/4G%20LTE%20Patents%20for%20Standards%20Data%201Q%202015_Intro.pdf  ).

Among 42 LTE patents holders, NPE accounts for 11% IPR share of LTE standard related patents. Identified NPE IPR shareholders are Adaptix, ETRI, InterDigital, Innovative Sonic, Inventergy, IPR Licensing, ITRI, Optis Wireless Technology, Seoul National University, Thomson Licensing and UPIP. Recent monetization activities exploiting LTE patents among NPE shareholders are as follows.

Adaptix, a subsidiary of Acacia Research, sued several telecom operators including AT&T and smartphone manufactures including HTC for infringement of its 4G LTE patents (ref. http://www.law360.com/articles/616031/adaptix-ramps-up-at-t-htc-patent-feud-despite-setback ). Adaptix entered into patent license agreements with several entities including NEC as settlements for patent dispute (ref. http://finance.yahoo.com/news/acacia-subsidiary-resolves-action-nec-105900394.html ).

InterDigital sued several smartphone manufactures including Nokia for infringement of its 4G LTE patents and entered into patent license agreement with Samsung as a settlement for patent dispute (ref. http://www.pcworld.com/article/2359140/samsung-signs-cellular-patent-deal-with-interdigital-ending-all-litigation.html ).

UPIP sued several smartphone manufactures including Huawei for infringement of its 4G LTE patents in Germany and the UK (Ref. http://www.businesswire.com/news/home/20140310005655/en/Unwired-Planet-Announces-Enforcement-Action-Germany-United#.VR6pAfnF-HA ).

Recently, Optis Wireless Technology sued ZTE for infringement of its 4G LTE patents acquired from Panasonic (Ref. http://www.rfcexpress.com/lawsuits/patent-lawsuits/texas-eastern-district-court/949460/optis-wireless-technology-llc-et-al-v-zte-corporation-et-al/summary/ ).

Inventergy is actively operating its licensing program exploiting its 4G LTE patents acquired from Panasonic (Ref. http://www.marketwatch.com/story/inventergy-launches-standardized-licensing-initiative-for-mobile-device-manufacturers-2015-03-09 ).

In addition to NPE IPR holders, Ericsson and Nokia (both entities are accounts for 13% IPR share of LTE standard related patents) are actively involved in monetization exploiting LTE patents:

Ericsson sued Samsung for infringement of its 4G LTE patents and entered into patent license agreements with Samsung as a settlement for patent dispute (Ref. http://www.reuters.com/article/2014/01/27/us-ericsson-samsung-patents-idUSBREA0Q0A120140127 ). Ericsson also sued Apple for infringement of its 4G LTE patents (Ref. http://www.cellular-news.com/story/Legal/67300.php ). Licensing royalty of Ericsson that can have from Apple is expected to be around $200 M per year (Ref. http://techipm-innovationfrontline.blogspot.com/2015/03/how-much-will-apple-need-to-pay-to.html ).

Nokia sued HTC for infringement of its 4G LTE patents and entered into patent license agreements with HTC as a settlement for patent dispute (Ref. http://www.theinquirer.net/inquirer/news/2327794/htc-and-nokia-end-legal-spat-with-patents-agreement ).

For more information, please contact Alex Lee at alexglee@techipm.com .

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