Car buyers love gadgetry. And automakers love stuffing it into every crevice of their vehicles because it helps distinguish what are, to many buyers, fairly generic vehicles. But automakers have lagged behind in their understanding of the culture of the semiconductor industry and licensing strategies. In 1980, electronic equipment made up less than one percent of the cost of a vehicle. In 1990, this had grown to seven percent, and today it's 22 percent. Yet the auto industry--and especially auto parts suppliers--have been slow to claim patents. Partly this is a cultural difference. In the semiconductor industry, R&D costs are high. Technical innovation causes rapid obsolesence. Product cycles are usually months. By contrast, product cycles in the auto industry are years. Car makers rely on mature silicon processes. Reliability, cost and safety have priority over innovation. These factors along with lower profit margins have led auto makers to avoid large licensing campaigns. John Scott-Thomas in "EETimes" explores how this is set to change.
A New Source of Rising Car Costs: Patent Attorneys
Car buyers love gadgetry. And automakers love stuffing it into every crevice of their vehicles because it helps distinguish what are, to many buyers, fairly generic vehicles. But automakers have lagged behind in their understanding of the culture of the semiconductor industry and licensing strategies. In 1980, electronic equipment made up less than one percent […]
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