Smart cities are increasingly becoming a reality thanks to the Internet of Things (IoT), which is bringing a wide range of municipal services into the 21st Century by enabling communication, data collection and automation across a vast range of objects and devices.
Many of these devices and services are powered by standardized connectivity technologies including cellular and Wi-Fi, each of which have well-established patent licensing ecosystems. This presents a unique set of new challenges for both established patent owners and emerging IoT product makers.
Most notably, instead of a few major players, the IoT is characterised by a large number of low-volume implementers – with many companies shipping between 1,000 and 20,000 units per year. Licensing models built around dealing with a handful of consumer electronics makers must adapt to this.
There is also fierce competition among several alternative technologies in the space, including those that operate on the unlicensed spectrum. These alternative solutions come with differing technical capabilities and IP landscapes. That makes it imperative to devise licensing solutions that enable product makers to scale up rather than acting as a barrier to deployment.
In addition, there is relatively low awareness of IP among IoT market actors. To the extent that they are aware of patents, market players have a strong desire for transparency and predictability. However, it has taken time for clarity to emerge given many patent holders’ wait-and-see approach to the market. Education and communication are therefore essential elements of licensing strategy in these areas.
This session will gather stakeholders from all sides of this issue – patent owners, IoT end-product makers, module providers and intermediaries – for a discussion on where things stand in the market today, and the industry-driven solutions that are emerging to overcome these challenges and fuel the continued growth of smart city IoT connectivity.
An introduction by way of a recap of the Track 3 sessions so far this season will be provided by Agathe Michel de Cazotte, Carpmaels & Ransford LLP.
