Mobile phone patents could hurt innovation

By Alex Singleton | 9 May 2005

From EETimes.com:

Royalties on patents related to 3G mobile devices could significantly hurt the wireless industry and, in particular, hurt smaller device vendors, according to a report released Thursday by U.K. market research firm Informa.

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, the report notes. Not only would that level of expenditure hurt smaller vendors, but it also could stifle innovation, the report claims.

Given that mobile phone manufacturers have an incentive to innovate just to stay in the marketplace, it is difficult to see how patents really promote innovation in this sector.