STOCKHOLM -- Ericsson (NASDAQ:ERIC) today announced an initiative to accelerate the development of Internet of Things (IoT) by establishing a platform for licensing of standardized technology to device manufacturers, spanning from autonomous cars to irrigation sensors. The platform, operated by an independent company, will adopt a revenue sharing model for contributing companies and receive a mandate to license on behalf of the joining patent holders, aiming to simplify access to standardized technology.
This will be an additional go to market model for Ericsson, continuing to build on its IPR & Licensing business strategy to secure a fair return on its R&D investment. Ericsson will make its patents for relevant technologies available through the platform.
The intention of the platform is to be an efficient market place for vertical businesses' technology licensing needs, with flat per unit licensing fees for the various verticals that reflect how much of the connectivity technology a device uses. Companies can incorporate years of R&D and innovation in their business models by getting access to essential technology and leverage on the global network. This will enable them to reduce time to market and reach scale faster.
The new platform will be headed by Kasim Alfalahi, who will leave his current role as Chief Intellectual Property Officer and Head of IPR & Licensing at Ericsson.
Alfalahi says: "We are initiating this market place following discussions with both wireless industry players and key players in industry verticals. This platform shows Ericsson's and my personal commitment to provide a solution that works to the benefit of all parts of the ecosystem."
According to the latest edition of Ericsson Mobility Report, around 28 billion connected devices are expected by 2021, of which 15 billion will be connected machine to machine and consumer electronics devices.
Hans Vestberg, President and CEO, Ericsson, says: "Under Kasim's leadership Ericsson has established a leading position in the IPR licensing market. As more and more industries embrace connectivity and the Internet of Things, it is crucial that essential technology is accessible and that innovators continue to get fair returns on R&D investments. With his experience Kasim is the right person to drive this exciting new opportunity to accelerate market development."
Ericsson AB (Nasdaq: ERIC)