Discussion Topic One: Intellectual Property Rights and Global Standards Setting

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1 Discussion Topic One: Intellectual Property Rights and Global Standards Setting Presented by Earl Nied Chair, ANSI Patent Group Program Director of Standards, Intel Corporation Open Forum for Standards Developers June 20,

2 Overview Agenda Panel Introductions IPR in perspective Range of IPR Issues facing SSOs Discussion Topic: Ex-Ante disclosure of terms Slide 2

3 Panel Introductions Gil Ohana Counsel, Antitrust and Competition Department Wilmer Cutter Pickering Hale and Dorr LLP Scott Peterson Senior Counsel Hewlett-Packard Company Chuck Powers Director, Standards Strategy Motorola s Corporate Standards Department Richard Taffet Co-chair of the Intellectual Property Litigation and Patent Prosecution Group Bingham McCutchen LLP Slide 3

4 IPR in perspective While IPR may complicate our lives, bear in mind that Appropriate use of Intellectual Property Rights can help Simulate the creation of innovative technologies that facilitate the adoption and longevity of standards; and Promote market development and competition in products and services that implement standards. Successful SSOs typically strive to balance the interests of the stakeholders by using reasonable rules to efficiently select technologies that facilitate the timely adoption of the standard. Due to the wide range of business models and environments, there is no one-size-fits-all solution. Slide 4

5 Some* IPR Issues currently facing SSOs Issues dealing with the identification of potentially encumbered technology How much detail to reasonably request on potentially essential patents? How to differentiate between essential and non-essential IPR? Issues dealing with confirming commitments to license When to reasonably require a commitment to license? How to deal with potentially essential IPR held by non-members? What actions to take if a requested commitment to license is Not forthcoming? Expressly denied? How to deal with the licensing commitments when IPR is transferred? Issues dealing with the efficient selection of technology for inclusion How to avoid issues relating to IPR (such as the potential of hold-up )? How much and when can information regarding IPR licensing be reasonably requested? What can be reasonably and practically accomplish Ex-Ante and Ex-Post? * Not an exhaustive list Slide 5

6 What is Ex-Ante and Ex-Post? Technical content subject to change Production of compliant products feasible Charter Refined Additional Drafts Final Edits Technical Committee Formed 1 st draft for Member Review Ability to absorb change Functionally Complete Draft Technology Lock-in Publication Effective Period for Ex-Ante Consideration Ex-Ante Ex-Post Ex-Ante means before technology is locked-in to a standard Ex-Post means after technology is locked-in Slide 6

7 US FTC Chairman Majoras speech Antitrust concerns may have unduly suppressed some procompetitive benefit of standards development RAND commitment can be vague Transparency in price may increase competition Voluntary unilateral Ex-Ante disclosure is highly unlikely to require antitrust scrutiny Joint Ex-Ante discussions that are reasonably necessary to avoid hold up do not warrant per se condemnation Merit a rule of reason review Cautioned that neither Ex-Ante disclosure or discussion may be appropriate for all persons in all situations See: Recognizing the Procompetitive Potential of Royalty Discussions in Standards Setting Slide 7

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