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Justice Department Gives Nod to EPC Gen 2 Patent Pool
"The RFID Consortium has been waiting for this letter, and now it can move forward in launching the licensing agreements," says Jason Johnson, Via Licensing's VP of marketing and business development.
As with other patent pools, the RFID Consortium plans to charge one royalty fee for the right to use IP covered by each of the 10 patents. The revenue would then be divided among all membership patent holders. Half of the royalties will be allocated to participating companies based on the number of patents contributed by each participant, with the other half allocated substantially equally among participants. Members believe the pooling method will be the best way to keep RFID equipment costs down, as well as to prompt adoption by ensuring companies are compensated for their IP.
Although the consortium began in 2005 with 20 members, only the seven current members were judged to have patents considered essential for EPC Gen 2 technology. With the Justice Department's approval, the group now hopes to recruit other companies holding essential patents to join them. "Since we have the blessing from the DOJ, we now must educate those companies who own patents," Johnson says, regarding how the group can help those firms reduce their cost of licensing by providing it as a pool with other licenses.
"We certainly encourage as many patent holders as possible," says John Ehler, Via Licensing's director of licensing programs. "We expect a great number of essential patents and their patent-holders to come in [to the group]," Johnson adds. In fact, according to the DOJ, the membership of many patent-holders in the pool will be important to the market.
As with other patent pools, the RFID Consortium plans to charge one royalty fee for the right to use IP covered by each of the 10 patents. The revenue would then be divided among all membership patent holders. Half of the royalties will be allocated to participating companies based on the number of patents contributed by each participant, with the other half allocated substantially equally among participants. Members believe the pooling method will be the best way to keep RFID equipment costs down, as well as to prompt adoption by ensuring companies are compensated for their IP.
Although the consortium began in 2005 with 20 members, only the seven current members were judged to have patents considered essential for EPC Gen 2 technology. With the Justice Department's approval, the group now hopes to recruit other companies holding essential patents to join them. "Since we have the blessing from the DOJ, we now must educate those companies who own patents," Johnson says, regarding how the group can help those firms reduce their cost of licensing by providing it as a pool with other licenses.
"We certainly encourage as many patent holders as possible," says John Ehler, Via Licensing's director of licensing programs. "We expect a great number of essential patents and their patent-holders to come in [to the group]," Johnson adds. In fact, according to the DOJ, the membership of many patent-holders in the pool will be important to the market.
