Understanding Royalties and Licensing in Bluetooth LE: A Comprehensive Guide

Bluetooth Low Energy (BLE) has become an indispensable technology in the Internet of Things (IoT) and mobile technology ecosystems. Understanding how royalties and licensing work in the development and deployment of BLE technology is crucial for companies and engineers. This guide will demystify the chain of payments and technologies involved in the development and commercialization of BLE technology.

The Process of Technology Development and Licensing in Bluetooth LE

The process of developing Bluetooth LE involves several key players, each contributing to the creation and commercialization of this technology. Let's take a closer look at who gets paid and how this ecosystem functions.

1. Standard Developers

The first players in this chain are those who develop the standard. A consortium of researchers, physicists, and technologists come together to form a new protocol and define all the standards related to this technology. For Bluetooth LE, this involves aspects such as signal timing, hardware specifications, and software models. However, since the specific details are confidential and I have only worked with wired protocols, I can provide a general overview.

2. IP (Intellectual Property) Designers

Once the standard is defined, an IP designer comes into play. They design the hardware block that can be integrated into actual chips. This block typically comprises of firmware, algorithms, and other components that conform to the defined standard.

3. SoC (System on Chip) Designers

The next step involves the SoC designer company, which integrates this IP into their system. These companies develop the actual chip and ship it to the device manufacturer. In many cases, the IP designer is part of the same company that designs the SoC, allowing for seamless integration.

4. Device Manufacturers

Finally, the device manufacturer takes the chip and integrates it into their product. They sell the device to the customer, which is when they get paid. The device manufacturer pays the SoC designer a one-time cost for providing the IP that conforms to the spec and meets their requirements. Additionally, they pay a per-chip revenue to the consortium or organisation that came up with the spec.

History and Specific Examples

Historically, the development and commercialization of new technologies like Bluetooth 6.0 often involve a mix of researchers, physicists, manufacturers, and international committees. For example, the 3GPP (3rd Generation Partnership Project) is the organization that develops standards for 3G and 4G cellular technologies, which serve as the equivalent for cellular technology to Bluetooth's SIG (Special Interest Group).

For Bluetooth LE, the process is similar, but led by the Bluetooth SIG, which comprises a consortium of device manufacturers and IP designers. The SIG ensures that the standard is widely recognized and adopted.

Case Study: ANT and Garmin

ANT, a competitor to Bluetooth LE, was developed by Dynastream Inc. and later acquired by Garmin. Garmin licenses the ANT technology to manufacturers. This is important to note because when a smartphone manufacturer decides to use Bluetooth 4.0 LE, they don't pay a license fee to a company owned by Garmin. However, to use ANT at 2457MHz, a license is required.

This example highlights the complex interplay of technology development, licensing, and commercialization. Companies often form consortiums or have representatives on international boards to stay ahead of the curve and help develop new technologies.

Conclusion

Understanding the payment and licensing processes in the BLE ecosystem is essential for anyone involved in the development, deployment, or commercialization of BLE technology. Whether you are a researcher, engineer, or a manufacturer, knowing the roles and responsibilities of each player can help you navigate the complexities of this technology effectively.