Tuesday, May 10, 2005

INTERMEC POOLS RFID PATENTS: Intermec Technologies Inc. is attempting to simplify licensing agreements for its more than 145 radio-frequency identification (RFID) patents. Using a limited-time-offer approach, between June 1 and Aug. 31 Intermec will sell groups of its patents through four "portfolio families" to makers of RFID tags, readers, and printers.

Intermec previously sold each patent individually. The new approach includes a membership fee and royalties of 2.5% to 7.5%. Specific prices weren't disclosed.

While it has been possible for vendors to design and manufacture previous generations of RFID tags without infringing on Intermec's intellectual property, this appears to be more difficult with the Gen 2 RFID tags. Intermec owns patents for data encryption and increased read capabilities, which are affiliated with the Gen 2 tags.

Gen 2 tags eventually will replace Class-0 and Class-1 protocols. Retailers that have deployed RFID, such as Wal-Mart Stores Inc. and Metro Group AG, have begun testing the Gen 2 technology.

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