UK Hardware Users Could Face Higher Costs As IBM Asserts IP Rights

by Robin Pilgrim, LawAndTax-News.com, London

25 June 2003

The UK's Personal Computer Association (PCA) has issued a new warning over IBM's continuing campaign to assert its intellectual property rights and collect licensing charges from firms which it believes are incorporating its designs in their PC products.

Earlier this month, the PCA revealed that one of its members had received a communication from the firm's legal office, suggesting that its PC products 'may incorporate inventions covered by one or more IBM patents', and proposing a meeting to discuss the licensing of the technology, and warned that IBM is also likely to ask for substantial back-royalties from firms which sell own-brand PCs, which could cripple smaller organisations.

However, speaking this week, PCA chairman, Keith Warburton warned that end-users in the UK may also be affected by IBM's campaign:

'From the reports I receive, it appears that IBM is now targeting companies with turnovers of £20m or less,' he announced, continuing:

'If you are buying from a smaller supplier there is a chance these license fees may not have been paid and these companies may have to put up their prices. IBM has got them bang to rights.'

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