Avanci responds to China Society of Automotive Engineers research report

Avanci notes the Research Report on Licensing Fees for Essential Patents for Cellular Communication in the Automotive Industry released in December 2024 on the “Automotive Intellectual Property” official WeChat account managed by China Automotive Information Technology (Tianjin) Co., Ltd, an affiliate of the China Automotive Technology and Research Center (CATARC). The report was jointly authored by Professor Gong Jiong’s research team at the University of International Business and Economics and the Intellectual Property Branch of the Chinese Society of Automotive Engineers (China-SAE). Although part of the report focuses on Avanci’s pricing model and discusses Avanci at length, neither China-SAE nor the research team led by Professor Gong Jiong approached Avanci to discuss the substance of the research. Given this lack of communication with Avanci, it is no surprise that the report contains numerous inaccuracies concerning Avanci and our solution.

Avanci is an independent provider of optional licensing programs, including for connected vehicles, which provide a market-driven global level playing field. Since 2017, our 4G Vehicle program has grown to span more than 100 auto brands and almost 60 licensors. Our 5G Vehicle program, launched in 2023, now includes nearly 40 auto brands and over 70 licensors. More than 200 million connected vehicles worldwide are covered by an Avanci license. These numbers reflect broad market acceptance of our solutions and are a testament to the incredible collaboration among companies across industries worldwide.

The report ignores the wide market acceptance of Avanci’s pricing model by licensors and licensees around the world and makes no mention of Avanci’s many concluded license agreements. Nor does it recognize that participation in Avanci is only ever an option. An automaker that does not wish to take advantage of the simplicity and efficiency of our optional joint licensing solution will always have the alternative of negotiating licensing agreements bilaterally with individual patent owners.

Our website at avanci.com/vehicle has detailed and extensive FAQs which address many topics relevant to Avanci’s licensing model, including  “Does Avanci Vehicle license connectivity components?” and “How does Avanci Vehicle determine the royalty rate?” Avanci encourages readers of the report to review our FAQs for accurate information about Avanci’s licensing solution and to reach out to us with any further questions.

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