The auto industry is one of the first sectors to rely on Internet of Things (IoT) technologies, which connect devices, machines, buildings and other items with electronics, software or sensors. Interconnectivity across multiple vehicle parts and units relies on the specification of technology standards such as 4G or 5G, Wi-Fi, video compression (HEVC/VVC), Digital Video Broadcasting (DVB) and Near Field Communication (NFC) or the wireless charging Qi standard to name a few.
Many of these standards implemented in cars are subject to an increasing number of standard-essential patents (SEPs). The integration of highly patented standardized technologies creates economic risks for vehicle manufacturers as royalty rates that can be considered FRAND are yet debated in many cases also yielding SEP litigation.
The increasing integration of information and communication technologies in vehicles is creating new challenges for licensing patents in general, and for negotiating royalty payments.