A group of companies that make radio frequency identification tags, scanners and related software plan to pool their patents, hoping to increase the adoption rate of radio frequency identification devices (RFIDs). This venture will allow for one-stop licensing and royalty management. In addition, RFID supporters expect the technology to supplant bar codes because it will allow goods to be identified without the need for individual scanning of items.
The group plans to incorporate in the fall of 2005 and will hire a specialist to determine who owns the most important patents and the potential royalty structure for its members. It is anticipated that it will be offering licenses in 2006.
Intermec Technologies, a subsidiary of Unova, who claims that RFID patents cover many crucial applications of the technology, was not asked to join the consortium.
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