Ask the Expert

All About the Patent-Pooling RFID Consortium

The RFID Consortium LLC is a consortium of companies that own RFID patents. The Consortium aims to promote rapid adoption of UHF RFID in accordance with international standards by facilitating easier access, by manufacturers and customers alike, to essential UHF RFID patents and to provide patent owners the opportunity to receive fair compensation for those patents, all at a reasonable cost to the end-user.

RFID Consortium spokesperson David Poole explains the UHF RFID Standard, why the licensing arrangement is important for the RFID industry, what patents will be included in the licenses offered by the RFID Consortium, and more.

Q: What is the purpose of the RFID Consortium?

A: The RFID Consortium is designed to give companies involved in the RFID industry the ability to obtain a license to multiple RFID patents on a one-stop shopping basis. In particular, the RFID Consortium is going to offer patent licenses for patents that are essential to complying with the UHF RFID standard.

What is the UHF RFID Standard?

The UHF RFID Standard has been defined and published by EPCglobal and by the International Standards Organization (ISO). EPCglobal defines the standard in its EPCglobal Generation 1 (Class 0, Class 0+ and Class 1) and Generation 2 (Class 1) specifications, and the ISO defines the standard in its ISO/IEC 18000-Part 6c (including Amendment 1) specification.

What does it mean when you say that a patent is "essential"?

EPCglobal and ISO have defined a standard that is necessary to make sure that the current and coming generations of RFID readers and tags work with one another. In turn, the RFID Consortium is going to offer access to "essential" patents, that is, patents that would otherwise be infringed if a company made, used, or sold products that are in compliance with that standard. To make sure this is done fairly and consistently, an independent expert evaluates each patent for essentiality before it can be included in the portfolio license.

Why is the licensing arrangement important for the RFID industry?

In my personal view, the RFID Consortium was created for two reasons. First, there should be a simple and efficient mechanism for those who need essential patents to obtain access to those patents. As I said before, this helps create one-stop shopping. Licensees can get a single license that will cover multiple patents. Licensors also benefit. The licensing arrangement should dramatically reduce the burden that patent holders face in identifying potential licensees, negotiating deals, and collecting royalties. Second, the RFID patent landscape is complex and companies may be held back from making investments in this marketplace if they think they will only be buying a patent infringement lawsuit. I hope that by making available a portfolio license of essential patents, we can reduce litigation risks, encourage market entry, and help speed up the widespread adoption of RFID technology.

What is the current status of the RFID Consortium?

A lot has happened. The founding companies have signed all the necessary documents to enter into the licensing arrangement and have formed a limited liability company under the laws of Delaware to manage the licensing arrangement. These founding companies are members of the RFID Consortium LLC and may be joined by other companies that license their patents through the RFID Consortium and wish to become a member of the LLC. The RFID Consortium has an active and ongoing relationship with one of the world 's leaders in patent licensing activities, Via Licensing, which is a subsidiary of Dolby Labs. We have renewed the patent call last December and I understand that even more patents have been given to the experts for evaluation. We also have voluntarily submitted the agreements of this licensing arrangement for antitrust review by the U.S. Department of Justice.

Who can participate in the licensing arrangement?

The licensing arrangement is open to everyone who wants to take a license, whether they are businesses, academic institutions, whatever. In addition, any company that believes it has a patent that is essential to the UHF RFID standard can submit a patent for review and, if it qualifies, can join the Consortium.

When will licenses be offered by the RFID Consortium?

Licenses will not be offered until a favorable review from the U.S. Department of Justice is obtained. I am hopeful that the RFID Consortium will be able to start offering licenses perhaps as soon as the first quarter of 2008.

What patents will be included in the licenses offered by the RFID Consortium?

All essential patents of all participants in the licensing arrangement will be included in the licenses. I understand that patents continue to be submitted for evaluation by the outside expert. These newly submitted patents are coming from both current and prospective participants. Ultimately, every patent included in the license will be identified in both the license and on our website. We also anticipate that essential patents will continuously be added to the portfolio.

What kinds of companies have joined the RFID Consortium?

I think it is fair to say we have a very good cross-section of the industry. So far, we have both large and small companies from all over the world. Some are active leaders in the RFID industry in manufacturing labels, reader products, or both. Some of the other companies are not actively involved in the industry and are straight licensors.

Is it possible that a company could participate as a Licensee while not contributing its own patents to the consortium?

Yes. I expect that there will be some companies who do not have essential UHF RFID patents but who will want to obtain licenses once they are made available.

David Poole is also the former V.P. Patents and Technology for Zebra Technologies Corp. For more information about the RFID Consortium LLC, please visit www.rfidlicensing.com.