SOURCE ISACC TITLE IPR Issues AGENDA ITEM IPR

SOURCE: ISACC TITLE: IPR Issues AGENDA ITEM: IPR Working Group item 4 CONTACT: Howard Chatterton gsc 11_ipr_07 IPR Issues GSC: Standardization Advancing Global Communications 1

The Standards Process and IPR • Must be open and transparent with Essential IPR: • declared when known and as early as reasonably possible • available to adopters of the standard upon license request • Must respect the contribution of valuable intellectual property • Must result in standards that are technically proficient so they can be widely accepted GSC: Standardization Advancing Global Communications 2

FRAND • ISACC Supports FRAND / RAND – Standards-Essential IPR Licenses available upon request to anyone wishing to implement the standard: • At reasonable terms and conditions • On a non-discriminatory basis • IPR must be encouraged, respected and protected – To ensure that the best and most innovative technology is made available for inclusion in standards – To encourage access to proprietary technology that otherwise wouldn’t be available outside the individual proprietor – For standardization and its benefits to thrive long-term GSC: Standardization Advancing Global Communications 3

Standards IPR Policy Principles • Basic Principles of Effective IPR Policies must – Recognize the right of SDO member IPR holders to receive reasonable and adequate compensation for the shared use of their technology • Users of standardized technology must respect, not erode intellectual property rights – Take into account and balance the interests of stakeholders • IPR policies do not discourage standards collaboration or widespread acceptance because they do not – Mandate members to perform corporate patent searches – Impose unreasonable disclosure obligations – Seek to impose compulsory licenses or inflexible licensing commitments on SDO member IPR holders – Require license access to more than Essential IPR – Require mechanisms to resolve potential disputes in licensing negotiations – Require SDOs to conduct landscape surveys of possible IPR GSC: Standardization Advancing Global Communications 4

Discussions within ISACC • • ISACC continues to support the FRAND Principles and encourage that it be observed by all parties IPR and commercial matters outside of the Standards context have been raised in discussion: – – • • Issues brought on by high profile IPR assertions Controversial topics under discussion include • Whether cumulative royalties threaten standards adoption or is the price to pay for use of IPR in a dynamic, innovation economy • Alleged “abuse” or high royalty rates charged by some patent holders, whether SDO member or not • Royalty commonly charged on ASP (average selling price) of complete unit rather than to a specific portion of device (e. g. radio or phone) • Dispute resolution during license negotiation • Risks of increasing non-SDO member IPR not under license or FRAND terms ISACC is monitoring these topics, and the actual extent of occurrence and impact on standards process or adoption Injecting commercial objectives in the standards process will delay global standards development, contrary to emphasis on shorter standards development cycles GSC: Standardization Advancing Global Communications 5