Even though 3G has not yet been launched in many markets, telecom companies have already focused attention on a next generation mobile technology, LTE (long term evaluation). Patents are being filed in the field and companies are competing for intellectual property rights. LTE is a step towards fourth generation (4G) of radio technologies designed to increase the capacity and speed of mobile telephone networks.
Ericsson, a leading 2G, 3G and 4G mobile technology provider, says it is at the number one position, when it comes to patents granted for LTE.
Kasim Alfalahi, vice-president and chief intellectual property officer, for Ericsson and responsible for Ericsson?s global IPR organisation, says Ericsson has 25% share of all granted patents. The next competitor has 15% of the patents.
This is expected to translate into a big share of the future LTE market for Ericsson. Telecom equipment makers such as Nokia and Huawei too have been making claims of having a fair share of the patents in the segment.
It is not only the smart phones that will use LTE, it is also expected to see massive machine-to-machine communications. Ericsson estimates that there will be 50 billion devices that will be connected and the company expects big appetite for 4G and is looking at licensing these technologies.
The patented technology is needed if companies want to make standards-compliant LTE equipment be it handsets, base stations or network equipment or any other connected devices. Alfalahi said machine-to-machine licensing is taking off. Growth is coming from transport, construction, transport and even healthcare.
Ericsson has 80 licensing agreements, generating revenues. It has licensed the technology to most telecom companies such as Samsung, LG, Apple, Blackberry, HTC, Motorola and Huawei. The company has 25,000 patents and gets significant revenues from patents and applications. The Indian R&D operations has seen one patent being filed.
However, protecting these patents is not easy. ?The problem is some companies do not understand that there is a cost for acquiring technology and these companies are everywhere ? in China, India, Europe and US,? he points out. ?I have many examples where they come and negotiate licence and our experience is that they are the ones more successful be it HTC, Blackberry or Apple who signed up with us before launching,? says Alfalahi.
?Indian companies should play in by the rules and if they do so it will be easier for them to out with their technologies. If they want to grow they should go for deals with patent holders else they will not be successful. Significant players take licenses and others hide. They win for a short period and they disappear,? he says.
?We will strike and are preparing to take action and I know that patent firms are preparing for a strike and that is not a good sign. Ericsson is not going to let them (companies infringing on their patent) to get away and this is not just in India,? he warns.