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Equality of arms or anti-trust offence?

18.06.2024

The use of 4G or 5G in smartphones or cars requires the licensing of thousands of patents.

Implementers can now jointly negotiate mobile phone patent rights, which could strengthen their position in FRAND negotiations.

On June 10, 2024, the German Federal Cartel Office has given car manufacturers Volkswagen, BMW and Mercedes as well as the steel group ThyssenKrupp the green light for joint negotiations on certain mobile phone patent rights. The Federal Cartel Office announced that it had authorised the launch of the "Automotive Licensing Negotiation Group". The group is open to other companies from the automotive industry.

The use of 4G or 5G in smartphones or cars requires the licensing of thousands of patents, said Andreas Mundt, head of the Federal Cartel Office. There are no major objections to the negotiating group as long as it is limited to non-automotive-specific standards and remains open to other members.

The car industry only accounts for less than 15 per cent of the corresponding mobile phone licences, and the licence costs for the patents concerned only make up a small proportion of the production costs of a vehicle, the Cartel Office explained its decision.

Official press release of June 10, 2024

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