• 5 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 11 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 13 minutes Iran in the world market
  • 15 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 17 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 3 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 3 hours Let's shut down dissent like The Conversation in Australia
  • 13 hours Trump new National Security Advisor. Trump easily manipulated.
  • 11 hours Is It Time To Invest In Offshore Drillers?
  • 34 mins Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 17 hours Aramco Production
  • 13 hours The Spy Money: U.S. Wants To Seize All Money Edward Snowden Makes From New Book
  • 8 hours Trump Will Win In 2020 And Beyond..?
  • 6 hours Democrats and Gun Views
  • 1 day USA Wants Iran War -- Shooty Shooty More
  • 1 day The Belt & Road Initiative: A Wolf in Sheep's Clothing?
Alt Text

Is It Time To Go Long On Natural Gas?

Buying natural gas futures in…

Alt Text

Trade War Optimism Halts Oil Price Slump

Financial markets have received a…

Alt Text

Natural Gas Could Be Replaced Within 15 Years

Natural gas fired power plants…

Michael McDonald

Michael McDonald

Michael is an assistant professor of finance and a frequent consultant to companies regarding capital structure decisions and investments. He holds a PhD in finance…

More Info

Premium Content

Self-Driving Cars Creating New Investment Options

With the push to develop self-driving cars, telecommunication companies are looking to simplify the process for providing the automotive industry patented technology. Self-driving cars will need to rely on advanced computers that can flawlessly connect to other nearby cars and devices. This means the creators of these computers will require royalties, as per their patents. The technologies and corresponding patents needed to create self-driving vehicles are creating new investment opportunities for investors.

For self-driving vehicles, the technology in question is similar to your phone playing music in your car via Bluetooth. A license agreement is a necessary deal between the car and phone companies, otherwise your music won’t play or your phone won’t charge. Many automakers are working to create self-driving cars, an extremely technical field that will require the use of uncommon partners’ technology. In today’s day and age, patents are created for each new car and phone model, meaning dozens of lengthy license agreements. This new hybrid field of computerized cars is sure to cause these companies headaches.

To make the transition into the future easier, the company Avanci has partnered with telecom firms Qualcomm Inc., Ericsson AB, ZTE Corp. and Royal KPN NV. Avanci is a one-stop marketplace that standardizes the legal process and completes the license agreements at fair flat rates based on the technology. This mediator will simplify the process, allowing manufacturers to focus on production. The new market place should help Qualcomm, Ericsson, and other telecommunications firms to capitalize on self-driving cars without having to worry as much about the threat of lengthy and expensive patent litigation.

Avanci is increasingly trying to capitalize on the Internet of Things, the basic wireless connection of different machines to one another. This includes self-driving cars, but it also includes companies that create smart meters, the devices that regulate your electricity consumption. Companies like Itron and Honeywell are working to integrate these devices with smartphones and potentially cars so they react –adjust the temperature, turn off your water- when you leave or return home. Related: OPEC Output Freeze Deal To Last One Year, Secretary-General Says

Having only gotten its start in April, Avanci is still privately owned. Their idea is original and unshared by any other company. As Avanci gains attention, we will likely see similar companies enter this market. Avanci creates an opportunity for more efficient technology patent deals and it should be a long-term partner for many major tech companies. Given its business model, it would also not be surprising if the firm became a takeover target for one of the intellectual patent holding firms like IDCC.

Avanci’s growth and success in IOT is a small victory for the Avanci-aligned telecom companies. Major firms like Apple and Microsoft in the phone industry often set the licensing rates at prices that are too high for smaller companies to compete with. Qualcomm, Ericsson and InterDigital now have the opportunity to fairly provide licenses at a reasonable rate across a broad spectrum of customers. This is a win for smaller telecom companies and would be an ideal long-term investment choice. All three of these companies’ stocks jumped in price on Wednesday with Avanci’s announcement. Apple and Microsoft however, could report losses if they don’t find a way to enter the market.

Avanci believes their services will greatly benefit Ford Motor Co. who is new to requiring patented technology in their cars. Honeywell International is a common producer of thermostats and will likely require Avanci’s help as they become more mindful of smart meters. Honeywell’s stock moved $1.25 on Wednesday following the announcement. Both of these businesses are about to enter new markets that will completely rely on this service.

As self-driving cars become more prominent and the Internet of Things continues to grow, the demand for these types of patents will increase. With Avanci becoming more popular, the customers they aid in both the auto and telecom industries will realize substantial benefits. Wise investors should pay attention to the developments in the space.

By Michael McDonald of Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play