BMW takes Avanci licence after patent pool launches 5G vehicle programme

BMW is now a licensee in Avanci’s newly launched licensing programme for 5G connected cars. The programme allows patent owners to connect with car makers and Internet of Things (IoT) companies, and share 5G standard essential patents under a single licence.

It covers standard essential patents for 2G, 3G, 4G and 5G technology. This includes cellular vehicle-to-everything technology, also known as C-V2X, which facilitates communication between vehicles, as well as to cyclists, pedestrians, and transportation infrastructure. The rate for the 5G programme is $32 per vehicle, although Avanci has offered the rate at $29 for licensees signing up within six months, or before they ship their first 5G vehicle.

Avanci gains licensors

The progamme has already gained 61 licensors since its official launch in August 2023. In addition to BMW, which includes the Mini and Rolls Royce brands, the Mercedes-Benz Group is also a licensee. According to a report on 5G in connected cars by Tech Insights, at least 25 global car makers have committed to implement 5G technology in their vehicles.

In a press release, Laurie Fitzgerald, senior vice president at Avanci, says, “The launch of our 5G Connected Vehicle program is an important milestone for Avanci, as we can now provide automakers with the efficient option of a single agreement, covering patented cellular technologies from dozens of organisations worldwide, to support the roll-out of 5G in connected vehicles.”

Building on success

Avanci already licenses 2G, 3G, and 4G SEPs for mobile technology, with its 4G vehicle programme grown to include 57 patent owners. It also has over 80 automotive brands as licensees, including BMW and Ford. Other well-known Asian and European companies such as Nissan, Toyota, Honda, Renault and Stellantis have also taken licences. Members of the patent pool include Nokia, Sharp and Conversant.

Avanci announced its plans to launch a 5G programme back in 2020. The announcement came soon after the US Department of Justice’s (DoJ) Antitrust Division review of Avanci’s 5G automotive programme. In its Business Review Letter, published on 28 July 2020, the DoJ confirmed that the roll-out of Avanci’s 5G licensing programme would not be anti-competitive.

For Avanci, the roll-out of its 5G licensing network marked the beginning of discussions with IoT device manufacturers, the auto industry and patent owners. The aim was to find out how streamlining the patent licensing process for 5G connected devices would benefit its customer base.

Car makers under pressure

Litigation over connected cars in recent years has increased pressure on auto manufacturers to take licences to secure their connectivity capabilities. Patent owners have fought a tough battle with premium brands, above all Daimler. For a long time, it was locked in one of the market’s most hard-fought litigation cases against Nokia in Germany. However, connected car battles also extended to models in the mid-range and lower price segments.

But events such as Munich Regional Court’s decision in May 2022 that Ford had infringed a patent owned by Avanci member IP Bridge have encouraged automotive companies to take licences. Another factor likely to have accelerated this development is Avanci’s announcement in July last year that it was increasing its licensing rate for the 4G programme. In September 2022, the pool increased the fee for newly-joined automotive brands from $15 to $20 per vehicle.