Automotive lobbyists write to Avanci about derivation of 5G SEP royalty rate, but their letter reflects misconceptions

On Wednesday, an Avanci executive lauded the achievement of licensing 100 automotive brands through their 4G program. While not all carmakers have adopted 5G, those who have are well-represented within Avanci's portfolio. The Alliance for Automotive Innovation (AAI) and other industry associations have written to Avanci's CEO seeking transparency on their 5G royalty rate. The letter appears to be a catalyst for debate on standard-essential patent (SEP) royalty rates in the automotive sector, potentially influencing legislative processes. The letter's origins, penned by lobbyists with legal assistance, resemble typical D.C. lobbying tactics. The AAI's press release mischaracterizes Avanci as a "5G Patent Holder," highlighting a fundamental misunderstanding of Avanci's optional licensing program. The automotive industry's push for lower licensing costs is valid, but their demands must align with factual accuracy and legitimate objectives. The industry's concerns could be addressed through bilateral licensing with individual patent holders. The AAI's request for transparency regarding Avanci's 5G SEPs seems redundant, as this information is publicly available on Avanci's website and other sources. Additionally, the reference to transparency obligations in the EU seems premature, given the legislative proposal's uncertain future. The AAI's preconceived notion of Avanci's royalty rates suggests an inherent dissatisfaction with any response provided.



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