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German automaker Mercedes-Benz has become the first car company to sign a licensing agreement with US patent platform Avanci to use 5G technology in its connected vehicles, according to reports. Mercedes-Benz will start selling vehicles equipped with 5G technology in Germany immediately. Avanci licenses standard-essential patents on behalf of telecommunications firms and other patent holders. The Avanci 5G Connected Vehicle program builds on the success of its 4G program, which has more than 130 million connected vehicles from over 80 automotive brands. Under the 5G program, automakers will initially pay to license each vehicle, with the price increasing to next year. They will also have access to patents for 4G and other legacy standards. By comparison, automakers under the 4G program pay per vehicle for access to 2G, 3G, and 4G patents. Avanci currently has 59 participants in its 5G program, including Nokia, Ericsson, Qualcomm, Panasonic Holdings, Sony Group, and Huawei Technologies. The involvement of Chinese entities in the program could make it attractive for Chinese car manufacturers to take licenses.

Avanci plans to negotiate licensing agreements with other automakers in order to promote the development of vehicle-to-everything (V2X) technology. V2X enables vehicles to directly communicate with other vehicles, cyclists, pedestrians, and transportation infrastructure. Avanci will also pitch its 5G program to Japanese automakers, who have lagged behind rivals in signing patent deals. Avanci’s program offers automakers a single agreement that covers patented cellular technologies from multiple organizations worldwide, allowing car manufacturers to focus on innovation rather than negotiating with individual patent holders. According to TechInsights, the share of 5G connected vehicles is expected to grow to over 50% of new vehicle production in the next five years.

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