The main problem with Semtech’s LoRa technology being patented is the potential for it to create a monopolistic situation and limit competition in the low-power wide-area network (LPWAN) market.
Here are some of the key issues with the LoRa patent:
- Proprietary technology:
- LoRa is a proprietary technology owned and controlled by Semtech Corporation.
- This means Semtech has the exclusive rights to the LoRa technology and can dictate the terms and conditions for its use.
- Licensing fees and royalties:
- Companies that want to use LoRa technology in their products or services have to pay licensing fees and royalties to Semtech.
- This can increase the cost of LoRa-based solutions and make it harder for smaller players to enter the market.
- Lack of open standards:
- LoRa is not an open standard, unlike some other LPWAN technologies like Sigfox or NB-IoT.
- Open standards allow for more competition, innovation, and interoperability between different vendors and solutions.
- Vendor lock-in:
- The proprietary nature of LoRa can lead to vendor lock-in, where customers become dependent on Semtech and have limited options to switch to alternative technologies.
- Potential for abuse of market position:
- As the sole owner of the LoRa technology, Semtech could potentially abuse its market position by setting high licensing fees, restricting access, or favoring certain partners over others.
- Slower adoption and innovation:
- The proprietary nature of LoRa may slow down the adoption and innovation in the LPWAN market, as companies may be hesitant to invest in a technology with a single point of control.
To address these concerns, some industry groups and organizations have been advocating for the development of open, royalty-free LPWAN standards that can foster more competition and innovation in the IoT market. This could help to mitigate the drawbacks of Semtech’s patented LoRa technology.
In the context of IoT, where interoperability and open standards are crucial, the patenting of LoRa is particularly problematic because it is hindering the growth of IoT. Also, experts argue that patents can actually hinder innovation, rather than promote it. They argue that patents can create a “patent thicket” that makes it difficult for others to innovate, as they may need to navigate a complex web of patents and licensing agreements.
The EU wants to create an IoT platform in which all vendors can make products on equal terms for several reasons:
- Promoting competition: By creating an open platform, the EU aims to promote competition among vendors, which can lead to better products, lower prices, and more innovation.
- Encouraging innovation: An open platform can encourage innovation by allowing multiple vendors to develop products and services that can interoperate with each other.
- Reducing vendor lock-in: By creating an open platform, the EU aims to reduce vendor lock-in, which can limit the ability of customers to switch between vendors or use products from different vendors.
- Improving interoperability: An open platform can improve interoperability between different products and services, which can make it easier for customers to use products from different vendors.
- Enhancing security: An open platform can enhance security by allowing multiple vendors to develop products and services that can interoperate with each other, which can make it more difficult for hackers to exploit vulnerabilities.
- Supporting the development of the IoT ecosystem: By creating an open platform, the EU aims to support the development of the IoT ecosystem, which can lead to the creation of new products, services, and business models.
- Reducing dependence on a single vendor: By creating an open platform, the EU aims to reduce dependence on a single vendor, which can make it more difficult for a single vendor to dominate the market and limit competition.
Overall, the EU’s goal is to create an IoT platform that is open, interoperable, and secure, and that allows multiple vendors to develop products and services on equal terms. This can help to promote competition, innovation, and the development of the IoT ecosystem, while also reducing vendor lock-in and dependence on a single vendor.