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3 Recommendations Before Buying Gen 2 Technology

Analyst John Fontanella of Boston-based research firm Yankee Group outlines three recommendations for buyers of RFID Generation 2 technology.
Dec 30, 2004This article was originally published by RFID Update.

December 30, 2004—Now that EPCglobal has ratified the second generation standard, many companies will begin moving forward with RFID deployments. Analyst John Fontanella of Boston-based research firm Yankee Group outlines three recommendations for buyers of Generation 2 technology.

First, protect your organization from possible intellectual property issues. Just because GEN 2 is technically "royalty-free" does not mean that all GEN 2-compliant RFID software and hardware is. Indeed, no sooner had GEN 2 been ratified than Intermec reiterated its intention to collect royalties on RFID solutions that employ technology covered by its 125+ related patents. Second, buy from brand-name vendors, many of whom have been waiting to enter the market until after GEN 2 was ratified. It has been widely expected, for example, that in mid-2005 Philips and Texas Instruments would join the fray of RFID tag manufacturers, many of whom are young, small, and relatively unknown outside the RFID space. Finally, don't expect GEN 2 tags too soon. While December's ratification does mark the beginning of the tag production race, the first of those tags will probably not become available for six months or longer.

GEN 2 ratification is an important step in the RFID industry's maturation, but it is an early step. It will be some time yet before the market bears the fruit of this new standard, so potential buyers need not be too hasty.

Read the article at Yankee Group
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