Mercedes-Benz Inks Patent Accord for 5G Connected Cars

Recent reports from international media indicate that the Mercedes-Benz Group has achieved a significant milestone by becoming the inaugural automotive company to establish a collaboration with the US patent platform Avanci. This partnership grants Mercedes-Benz the official authorization to incorporate 5G technology within their intelligent networked vehicles. Commencing on August 17, Mercedes-Benz will initiate the sale of vehicles equipped with 5G technology in Germany.

(Image: Mercedes Benz)

Avanci, functioning as a licensee for cellular patents on behalf of telecommunications firms and other patent proprietors, has steadily expanded its roster of patent licensees since its establishment in 2016. This list includes notable industry players such as Nokia, Ericsson, Qualcomm, Panasonic, Sony, and Huawei, among others.

With the proliferation of intelligent connected vehicles, Avanci has previously entered into 4G patent licensing agreements with numerous automobile manufacturers.

Founder and CEO of Avanci, Kasim Alfalahi, conveyed in an interview that the company intends to engage in similar discussions with other automakers, under analogous terms, with the overarching goal of advancing the evolution of V2X technology.

V2X technology empowers vehicles to communicate directly with fellow vehicles, cyclists, pedestrians, and transportation infrastructure. Alfalahi noted, “V2X is integral to 5G; it constitutes a vital aspect of our agreement.”

In accordance with Avanci’s 5G project agreement, automakers will initially contribute $29 per vehicle as patent royalties, a figure projected to increase to $32 in the following year.

Comparatively, most automakers participating in the 4G initiative are mandated to remit $15 per vehicle to access patents encompassing 2G, 3G, and 4G technologies. Notably, Avanci elevated the contract fee for 4G projects to $20 for new licensees in the preceding year.

However, automakers engaged in 5G ventures can also leverage patents spanning 4G and other pre-existing standards.

To benefit from early discounted pricing, automakers are required to formalize contracts by February or prior to the commencement of initial sales for 5G-connected vehicles.

Avanci’s 5G endeavor boasts a total of 58 licensees, inclusive of prominent entities like Samsung Electronics and Japanese wireless provider NTT Docomo.

In the foreseeable future, Avanci aims to present 5G projects to Japanese automakers; however, specific progress details remain undisclosed. Notably, Japanese automakers only recently concluded a 4G patent agreement last year, lagging behind competitors such as BMW and General Motors.

The progression of previous patent negotiations involving Japanese automakers was hindered by their insistence that auto parts suppliers bear the responsibility of obtaining patent licenses and discharging licensing fees.