BMW and Patents To avoid litigation wars that have previously been expensive to the smartphone industry, BMW has entered a licensing deal as cars, like smartphones, have many advanced features that use various Silicon Valley technologies.

The licensing deal grants BMW access to a pool of wireless industry patents owned by 11 companies, including Qualcomm, Ericsson AB, and Sony Corp. The deal requires BMW to pay a percar fee to access this pool of patents.

a. What are the barriers to entry in the wireless technology market? How is BMW dealing with them?

b. Show in a graph how the price and quantity of wireless technologies are determined.