3G Royalties Could Stifle Industry Development, Report Warns

Law360 (April 29, 2005, 12:00 AM EDT) -- Sky-high royalty rates for patented 3G technology could stifle development and innovation in the burgeoning wireless data industry, a research report suggests.

In the next 12 years, the mobile device industry could spend between $80 billion and $100 billion in royalties on patents held by companies such as Qualcomm, Nokia, Motorola and Ericsson, according to a report released Thursday by U.K. market researcher Informa.

The report warns of dire consequences if intellectual property owners charge royalty rates that match those currently sought by Qualcomm, one of...
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