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October 03, 2007

ABI: Asian Mobile Handset Vendors Racing to Stockpile 4G Technology Patents


Mobile handset manufacturers in Asia are looking ahead to the emerging 4G market by quickly snapping up any and all intellectual property (i.e. patents) that seems likely to prove beneficial in the next few years. That’s according to a new report out this week from ABI Research (News - Alert).



 
Asian handset vendors, ABI said, have had a tough go of things in 2G and 3G markets because their intellectual property portfolios were relatively puny. As a result, they ended up spending a lot on royalty fees—often amounts much higher than paid by competitors like Sony Ericsson, Motorola (News - Alert) and Nokia.
 
Now, firms including Toshiba, Matsushita, Samsung, NEC (News - Alert), Mitsubishi and Sony are fighting back by attempting to capture as much 4G intellectual property as they can, in advance of that market’s maturation.
 
For those not familiar, the evolution of mobile telephony technology often is referred to in four (so far) stages: 1G, 2G, 3G and now 4G. 1G refers to analog cellphone standards introduced in the 1980s. 2G refers to the switch from analog to digital. 3G refers to new standards that make possible broadband services using mobile telephony (think video and graphics-intensive gaming). 4G is anything beyond 3G—end-to-end, IP-based multimedia networks that boost performance and applications even more.
 
4G is still in its infancy, but fast approaching toddlerhood, as evidenced by the flurry of patent-filing among handset manufacturers. ABI analyst Stuart Carlaw said that, when it comes to 4G patent filing volume, eight of the top 15 firms are based in Asia.
 
“More important, Samsung (News - Alert), and Matsushita are the most active by far,” Carlaw said in the report.
 
Of course, these companies are taking something of a chance by stockpiling patents. Patent ownership by itself won’t guarantee success in the 4G market, ABI warned in its report. Smart companies will also analyze the involvement of standards bodies, thus facilitating customization of solutions based on each firm’s patents.
 
ABI predicted that the intellectual property landscape for 4G will be even more diverse than for 3G, leading to two possible scenarios: a high level of cross-licensing, or increasing numbers of companies holding many patents but not actually manufacturing products or getting involved in standards development.
 
“One thing is for sure,” Carlaw said in the report. “The race to control 4G intellectual property will not be smooth sailing.”
 
 
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To learn even more about 4G wireless technology, check TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP communications industry. The library offers white papers, case studies and other documents free to registered users.

 
Mae Kowalke previously wrote for Cleveland Magazine in Ohio and The Burlington Free Press in Vermont. To see more of her articles, please visit Mae Kowalke’s columnist page. Also check out her Wireless Mobility blog.





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