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ITU Workshop on Standards and Intellectual Property Rights (IPR) Issues

ITU Workshop on Standards and Intellectual Property Rights (IPR) Issues. STANDARDS & IPR. Dinesh Chand Sharma, Director, Regulatory Affairs Monica Magnusson, Director, Patent Portfolio Ericsson. Agenda. Why standardization in Telecom IPR in Telecom Telecom an Open Innovation

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ITU Workshop on Standards and Intellectual Property Rights (IPR) Issues

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  1. ITU Workshop on Standards and Intellectual Property Rights (IPR) Issues STANDARDS & IPR Dinesh Chand Sharma, Director, Regulatory Affairs Monica Magnusson, Director, Patent Portfolio Ericsson

  2. Agenda Why standardization in Telecom IPR in Telecom Telecom an Open Innovation What and Why FRAND in Telecom FRAND, a proven success in Telecom

  3. TELECOMSTANDARDIZATION FOR INTEROPERABILITY Charging IPNetworks Packet Gateway

  4. IPR IN TELECOM Follows concept of collaboration in other words open telecom standards e.g. 3GPP, 3GPP2 Concept of building on each others inventions Mutual benefit to the industry through market growth, globalization, and networked technology Local, Global collaboration works on R&D, IPR generation and its commercialization IPR Registration could be done in any, many countries

  5. OPEN INNOVATIONIN TELECOM STANDARDIZATION Best Technologies Consensus selection LTE R8 Requirements agreed early Concurrent research Technologysharing Consensus selection Joint technology ownership ~ 50 companies claim rights Need for fair, reasonable and non-discriminatory licensing

  6. FRANDWHAT DOES IT MEAN? FRAND commitment means no blockingpatents Essential patents licensed Fair return on R&D investments Market accessible to new entrants Reasonable cumulative royalty In summary Gives incentive for further innovation Makes it possible for new companies to enter the market Has a proven track record of global market success Fair compensation – in return for waiving monopoly

  7. FRAND ESSENTIAL IN THE OPEN STANDARDS TELECOMS INDUSTRY PATENTOWNER EQUIPMENTMANUFACTURER FRAND is intended to maintain the delicate balance between the interest of the intellectual property holder and the needs of the broader set of companies that need access to the essential intellectual property - “The essentials of intellectual property”, Signals Research group, 2010

  8. FRAND LICENSING IN TELECOMPROVEN SUCCESS Excluding M2M connections 9 000 • Licensing for new entrants • No patent blocking 8 000 LTE/TD-LTE 7 000 WCDMA/HSPA 6 000 GSM/GPRS/EDGE 5 000 TDSCDMA 4 000 Reported Subscriptions (million) 3 000 Mobile WiMAX 2 000 CDMA 1 000 Other 0 2008 2009 2010 2011 2012 2013 2014 2015 Mobile subscriptions by system standard FRAND licensing is a key mass market enabler Source: Internal Ericsson

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