BMW joins Avanci 5G pool

BMW is the second carmaker to sign up to Avanci’s 5G patent pool following its launch last month, it was confirmed today, September 18.

The carmaker joins fellow German auto giant Mercedes-Benz in signing up for the early royalty rate of $29 per vehicle before the price goes up in February 2024.

The deal covers all 5G-connected cars sold under the BMW, Mini, and Rolls-Royce brands.

BMW was the first licensee to sign up to Avanci’s old 4G programme in 2017. In that case, it took another 16 months before the next licensees, Audi and Porsche, joined as well.

The market for 5G seems to be moving quicker.

Three additional patent owners have joined the 5G pool since it was launched last month, it was also confirmed today, bringing the total number of licensors to 61.

The price for a 5G licence will go up to $32 on February 16, 2024 or upon the sale of an automaker’s first 5G-connected vehicle.

The 5G price represents a significant hike on the $15 Avanci charged for a 4G licence.

Standard-essential patent (SEP) industry sources have previously told Managing IP that automakers were likely to take the early-bird offer.

A series of protracted legal battles between SEP owners and automakers over 4G effectively ended in 2021 when Mercedez-Benz became the last German carmaker to take an Avanci licence.

Kasim Alfalahi, Avanci CEO, said: “Back in 2017, BMW was the first [licensee] to believe in the Avanci 4G Vehicle programme. Now, continuing their pioneering approach, BMW is one of the leaders in launching 5G-connected cars.

“We are delighted to welcome them to Avanci 5G Vehicle, continuing our long relationship, and we thank them for their ongoing trust and confidence in Avanci and our efficient and transparent one-stop solutions,” Alfalahi said.

Speaking to Managing IP last month, Alfalahi said the inclusion of new licensors such as Huawei was “critical” to the success of the 5G pool.