Apple, Volkswagen, BMW and Daimler have warned EU regulators that adopting patent fee guidelines that favor Qualcomm and Ericsson could hurt consumers and hinder innovation, according to a Reuters report.
The Fair Standards Alliance (FSA), the companies’ lobbying group, voiced their concerns in a letter to European Commission President Jean-Claude Juncker, Competition Commissioner Margrethe Vestager, Industry Commissioner Elzbieta Bienkowska and others.
Reuters reported that the move comes as the EU executive considers whether a fridge maker should pay a different rate for crucial patents than a carmaker, or whether a flat, fixed rate would be fairer.
Reuters reported that the European Commission draft favors the patent fee model used by Qualcomm and Ericsson, which is based on how much value a technology adds to a product.
It is opposed by Apple, Google and others in Silicon Valley, who favor fixed fees.
“The European Commission risks jeopardizing Europe’s potential to be a world leader in the Internet of Things by supporting a patent licensing system which rewards a few entrenched patent-holding companies at the expense of innovative companies and ultimately consumers,” the FSA said in the letter seen by Reuters.