The Virtuous Circle: How IP Powers Telecoms Innovation

This Industry Viewpoint was authored by Sami Saru, VP and Head of Patent Portfolio, Nokia

Infrastructure is discussed a lot in the world of telecoms, from cell towers to fiber networks, cloud-native cores to Open RAN deployments. What we don’t talk about as much are the invisible forces powering our industry (ideas, patents, and standards), turning raw creativity into the technology we use every day.

From the technologies powering our smartphones to the breakthroughs shaping the future of 6G, standards-based innovation – and the patents that protect it – keep the telecoms industry moving forward. Despite intellectual property’s (IP) vital role in our industry, it remains one of the most misunderstood and often overlooked elements driving progress behind the scenes. 

The innovation engine 

Every innovation in the telecoms sector starts with a creative idea; a solution to a real-world problem. Take network capacity as an example – with huge demand for data-heavy services like video streaming, an inventor might design a new compression algorithm reducing the bandwidth needed for high-definition content. This has the potential to ease network congestion and improve the streaming experience with lower data consumption. 

Rather than choosing to develop a solution for a proprietary ecosystem, an innovation is created to be incorporated into the open standardized ecosystem and made accessible to everyone. This creates what we call the “virtuous circle of innovation” – a shared approach which allows other companies to benefit from the invention, without needing to invest large sums in research and development (R&D) themselves. 

This model benefits everyone involved. Other companies can build upon standardized technology without having to risk investing in the development of the standards themselves. Barriers to entry are lowered, enabling new companies to enter markets more easily, increasing competition. Consumers enjoy more choice, better products and new services as real-life use cases emerge.  And royalties paid by the companies that use the patented technologies are reinvested into further R&D, fueling the next wave of innovation. 

This cycle is the engine of innovation, constantly turning to drive the telecoms industry forward and shape global connectivity standards like 4G, 5G, 6G, and Wi-Fi 8. Without shared patented inventions, many technological features that we take for granted today would not be possible. For instance, streaming videos or making mobile phone calls.

 Addressing IP misconceptions 

Despite its success, the IP system is often misunderstood. Some see it as a barrier to innovation, rather than an enabler.

The evidence of its success can be seen in the billions of interoperable devices currently on the market. These are created by thousands of different companies, from start-ups to multinational corporations, with thousands more companies running businesses and services “on top” of these devices. Original innovators benefit from this by collecting licensing royalties, and although litigation is rare, sometimes it is also necessary, while the vast majority of these agreements are signed without any litigation.

The system is as much about enabling implementers as it is about protecting innovation. By licensing proven technologies, organizations can focus their resources on developing compatible products and services, rather than duplicating existing work and investment in standard-setting. In turn, this accelerates time to market and reduces costs. 

This process is supported by the licensing of Standard Essential Patents (SEPs) on fair, reasonable and non-discriminatory (FRAND) terms – a model that has delivered huge economic and social benefits globally. The merit-based nature of standard-setting also ensures the best ideas are selected, regardless of company. It’s a collaborative and competitive process, underpinned by extensive R&D investment and rewarded through licensing.  

However, only a handful of companies invest in developing these standards, while the number of companies that use them continues to grow. This creates an imbalance, so it’s essential that the IP system remains strong and fair to keep open innovation thriving. 

A critical inflection point for the industry 

As we look to the future, the virtuous circle of innovation will become even more important. The transition to 6G will bring new challenges and opportunities – from immersive experiences to AI-native networks – and these advances will require unprecedented levels of collaboration and standardization. 

The first exploration of the 6G standard by 3GPP took place in Rotterdam one year ago, setting the foundation for the next generation of wireless communication. Since then, South Korea has hosted the first 6G standardization workshop and, most recently, 3GPP took the first concrete steps to make 6G a reality in its technical meetings in Prague. 

Today, the real work begins. The sector has launched a global effort to define the scope of 6G by 2028 – a vision aiming to seamlessly connect the digital, physical, and human worlds, powered by the transformative capabilities of AI. 

From the outset, 6G will introduce a new network architecture and groundbreaking technologies offering immediate operational and economic value. These early innovations will not only tackle today’s challenges but also lay the groundwork for future 6G evolution. 

From a device and user equipment (UE) perspective, 6G will redefine what it means to be connected. Smartphones, wearables, sensors, and industrial machines will evolve and become capable of processing, adapting, and collaborating in real time. With AI-native networks, devices won’t just receive data; they’ll anticipate needs, respond instantly, and operate autonomously in complex environments. For example, in remote surgeries, ultra-low latency and intelligent coordination between robotic instruments and wearable haptic feedback devices will allow surgeons to perform delicate procedures from thousands of miles away with real-time precision and confidence. 

The foundations of the future 

The foundations of tomorrow’s telecoms industry are being built today – quietly, but powerfully – through IP. The virtuous circle of innovation is not just a concept; it’s a time-tested approach that has driven progress across the telecoms industry for decades. It’s how ambitious ideas evolve into global standards, and how those standards become the everyday technologies we all rely on. 

As we stand on the brink of a new era of innovation, maintaining this momentum is more important than ever. Companies and industries must continue to work together to contribute to R&D investment, protect innovations, and share them through open standards. Only then will we create a future where everyone can reap the rewards of connectivity. 

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