4-Mar-99

1394 Companies Object To Appleís Royalty Demands

Apple Computer Corporation is seeking royalties of $1 ""per port"" (connection) for its FireWireÆ technology, which is the basis of the IEEE 1394 standard. The emerging market of FireWire consumer electronics and PC chip and hardware manufacturers are incensed over the per port charge. Originally marketed by Apple as FireWire, and adopted by the Institute of Electrical and Electronics Engineers (IEEE) as the standard high-speed interface for content transfer between a variety of consumer electronics and PC devices, 1394, along with DVD and DTV, is regarded as the foundation for the emerging ""digital convergence"" of traditional computer and home entertainment markets. Announced products from consumer electronics manufacturers that already licensed FireWire, such as Sony, Phlips, Canon, and most recently Matsushita, are not expected to be impacted. Many computer and camcorder manufacturers have adopted FireWire. Texas Instruments, who co-developed 1394 in the 1990s with Apple, is projecting a robust future for current and future generations of 1394 silicon. Work is on-going to bring to market the second generation of the IEEE 1394 standard, 1394b, which promises a doubling of transfer speed (from 400 Mbps to 800 Mbps) and greater cable lengths (from 4.5 meters to as long as 100 meters). The new standard is scheduled to be finalized this summer.