Nissan, Honda, and Toyota will all pay telecom companies for the wireless technology used to connect their cars to the internet.
A plethora of telecom companies, including Nokia, have demanded patent payments from leading Japanese car manufacturers for the connected-car technology they use. Typically, Japanese car manufacturers let part suppliers pay these fees thanks to their powerful position within the automotive industry.
For the first time, these Japanese automakers have agreed to pay such license fees and alongside Stellantis, have each signed a contract with Avanci which negotiates patents fees for the LTE communication standard. Nikkei Asia reports that the carmakers in question will pay between $15 and $20 per car that uses 2G, 3G, and 4G technologies.
The move from these Japanese carmakers to pay the patent cost for connected-car technologies comes after a number of European car brands signed similar deals with Avanci. For example, Mercedes-Benz Group agreed to pay 4G licensing fees to Nokia in June 2021.
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Other technology companies including Panasonic Holdings, Sony Group, and Sharp are also part of the latest round of negotiations.
Confirmation that many carmakers will pay these fees comes roughly eight months after 48 telecommunications technology companies demanded payments from Toyota, Honda, and Nissan, including the likes of Ericsson, Philips, NTT, Sony Group, Panasonic, and Sharp.
These 48 companies hold about 70 percent of the standard essential patents that form the basis of 4G. Most of these patents are considered indispensable to the development of connected cars and include various methods of transmitting and receiving radio waves with in-vehicle communication devices.
