Vendors Support LTE

Alcatel-Lucent, Ericsson, NEC, NextWave Wireless, Nokia, Nokia Siemens
Networks and Sony Ericsson have today announced a mutual commitment to
a framework for establishing predictable and more transparent maximum
aggregate costs for licensing intellectual property rights (IPR) that
relate to 3GPP Long Term Evolution and Service Architecture Evolution
standards (LTE/SAE). The companies support a single-digit dollar
amount as the maximum aggregate royalty level.

The companies invite all interested parties to
join this initiative which is intended to stimulate early adoption of
mobile broadband technology across the communications and consumer
electronic industries.

The framework is based on the prevalent industry principle of fair,
reasonable and non-discriminatory (FRAND) licensing terms for essential
patents. This means that the companies agree, subject to reciprocity,
to reasonable, maximum aggregate royalty rates based on the value added
by the technology in the end product and to flexible licensing
arrangements according to the licensors' proportional share of all
standard essential IPR for the relevant product category

Specifically, the companies support that a reasonable maximum
aggregate royalty level for LTE essential IPR in handsets is a
single-digit percentage of the sales price. For notebooks, with
embedded LTE capabilities, the companies support a single-digit dollar
amount as the maximum aggregate royalty level. The parties believe the
market will drive the LTE licensing regime to be in accordance with
these principles and aggregate royalty levels.

This framework balances the prevailing business conditions relevant
for the successful widespread adoption of the LTE standard, which
continues its progress toward definitive adoption by the industry in
the applicable standards forums and organizations.