development of innovative new standards jeopardised by ieee … · 2018-12-31 · ieee standards...

21
September 2017 Development of innovative new standards jeopardised by IEEE patent policy by Keith Mallinson WiseHarbor This article was commissioned by 4iP Council

Upload: others

Post on 13-Jul-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

September 2017

Development of innovative new standards jeopardised by IEEE patent policybyKeith MallinsonWiseHarbor

This article was commissioned by 4iP Council

Page 2: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

1

DevelopmentofinnovativenewstandardsjeopardisedbyIEEEpatentpolicy

Summary

InMarch2015,IEEEsignificantlyamendeditspatentpolicyinwhatwascouchedasan“update”butthatseekstosignificantlyrevisecommitmentsfrompartiesholdingpatentclaimsessentialtoIEEEstandardstolicensethoserightsonreasonableandnon-discriminatory(RAND)terms.Changesdisallowpatentholdersfromreceivinganyvalueattributabletothestandards,requirelicensingatthesmallestsaleablepatentpracticingunitlevel,anddenytheserightsholdersentitlementtoseekaninjunctionagainstanunlicensedimplementeruntilappellatereviewisexhausted.IEEE’sstatedobjectivewastoprotectimplementersfrompatentholdup,whichwasallegedwithoutanysubstantiation.1IEEEispromoting,byreducingtechnologylicensingcosts,theshort-terminterestsofcertainimplementerswhileunderminingstandard-essentialpatentvaluesandtheabilityofSEPownerstoreceiveadequatecompensation,theyareentitledto,fromlicensingtheirSEPs.

AsIpredictedintheIPFinanceblogpriortotheadoptionofthiscontroversialnewpatentpolicy,2andasindicatedbyothersincludingseniorgovernmentofficials,3thepurported“clarification”issignificantlyjeopardisingtheIEEEStandardsAssociationasavenuefordevelopmentofopentechnologystandardsthatincludesignificantpatentedintellectualproperty.LargeproportionsofcontributorstoIEEEstandardsarenowunwillingtoprovide“positive”LettersofAssurance(“LOAs”)underIEEE’snewpatentpolicy.

Inthispaper,IhavereviewedavailabledataonLOAsandsomethird-partyanalysisofthis.Myconclusionsarestriking:almostthreequarters(i.e.73percent)ofLOAsfortheIEEEflagship802.11WiFistandard,acceptedbyIEEEandpostedonitswebsiteinthe18-monthperiodtoJune2017,are“negative”LOAs,indicatingthesubmitter’slegitimateexanterefusaltopledgeRANDlicensingunderthenewpatentpolicy.Nearlyhalf(i.e.47percent)ofallacceptedLOAspostedontheIEEEwebsiteoverthesameperiodarenegativeLOAs.Morethanonethird(i.e.42percent)ofcompaniesportrayedasleaderswithLOAstoIEEEstandardsareunwillingtopledgetheirSEPsunderthenewpatentpolicyorhavenotprovidedLOAswhenaskedtodoso.

Thenewpatentpolicyhascreatedaperversesituationamongpatentownersandimplementers.IntheabsenceofpositiveLOAs,implementersareleftuncertainaboutwhichpatentpolicyapplies,ifany,andaboutfutureabilitytoimplementthestandard.Therefore,implementersmaybeunclearwhethermanySEPsaresubjecttonewlicensingterms,theoldlicensingtermsorarenotsubjecttoRANDlicensingtermsunderanypatentpolicyatall.Thisisunacceptable.Proponentsofthenewpatentpolicyarealsolamentingthislackofclarity,whiletryingtousethisasapretexttobreachbindingcontractualagreementsbetweenIEEEandpatentownersinpreviously-acceptedLOAs.4

1IEEE-SArequestforbusinessreviewletter,November7,2014;http://www.gtwassociates.com/answers/DOJ%20PDF/IEEEBRL2015/PatentHoldUpasRationaleIEEE_Bus_Review_Document_02_11072014.pdf2KeithMallinson:IEEEwilljeopardiseitsattractivenessasvenueforstandardsdevelopmentifproposednewIPpoliciesareadopted,February6,2015;http://www.ip.finance/2015/02/ieee-will-jeopardise-its-attractiveness.html3Seee.g.FormerRep.TerryLee,Don’tturnoffWi-FI(January8,2015),availableathttp://thehill.com/blogs/congress-blog/technology/228817-dont-turn-off-wi-fi;AdamMossoff,RealityCheck:WeakeningWirelessTechnologyPatentsHurtsEveryone(RCRWirelessNews,January28,2015)availableathttp://www.rcrwireless.com/20150128/opinion/reality-check-weakening-wireless-technology-patents-hurts-everyone-tag10;LeahNylenandLewisCrofts,EUWarnsofImpactofIEEE’sPatentPolicyChange(MLex,January27,2015);U.S.SenatorChristopherCoonslettertoU.S.DepartmentofJustice(14January2015)availableathttp://www.advancingengineering.org/christopher-coons.4SeeMarch2017slidesbyGilOhanaonbehalfofCiscoathttp://grouper.ieee.org/groups/pp-dialog/email/pdf6eBTMFaO8V.pdf,http://grouper.ieee.org/groups/pp-dialog/email/msg00437.htmlandcommentsinresponseathttp://grouper.ieee.org/groups/pp-dialog/email/msg00418.html.

Page 3: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

2

Chart1:Morethanonethird(10/24=42%)ofcompaniesIPlyticsportraysasleaderswithLOAstoIEEEstandardsareunwillingtopledgetheirSEPsunderthenewpatentpolicyorhavenotprovidedLOAswhenaskedtodoso

Source:IPlyticsempiricalstudyreportonpatentingandstandardisationactivitiesatIEEE5(blackandgreen);WiseHarboraddedCharttitlesinboldblack,identifiersandannotationsinothercolours.OrangeisthesuccessortoFranceTelecom.“Notapplicable:”PositiveblanketLOAacceptedpriortoMarch2015underpreviouspatentpolicy.

Approvalsfor“standard-amendments”802.11ahand802.11ahdeferredwithpolicyimpasse

Thereisdeadlockbetweenthetwosidesofthisargument–largely,patentownerswhoseekadequatecompensationfromlicensingtheirSEPsversussomeimplementers6whowouldliketominimisetheircosts.DespiteattemptsbyadvocatesofthenewpatentpolicytexttoportrayIEEEstandardizationworkascontinuingtoproceedwell,tothecontrary,thisisanillusionwithunreconcileddifferencesregardingapplicablepatentpolicyandLOAs.Previousattemptstosignificantlyunderminerightsofpatentownersinotherstandarddevelopmentorganizations(SDOs)havefailed:forexample;withanintellectualpropertyrights(IPR)policychangeatETSIinthe1990sthatwasabandonedbeforetakingeffect.

UnwillingnessofSEPholderstopledgetothenewpatentpolicyaredelayingstandardizationapprovaldecisions.IEEEseekstoapprovestandardsforwhichallknownSEPsarepledgedunderthenewpatentpolicywithacceptedIEEELOAforms.ButitisfailinginthisobjectivewithanunprecedentedhighnumberofnegativeLOAssubmittedandbecauseLOAsrequestedfromothersarenotforthcomingandshouldthereforeberegardedas“missing.”NegativeLOAsthathavebeenacceptedbyIEEEare,forexample,withstandard-amendments802.11aiand802.11ah.However,numerousotherprospectivenegativeLOAshavebeenrejectedbyIEEEbecausepatentownershavesoughttoindicate–andIEEEhasrefusedtoallow–willingnesstolicenseonabasisotherthanthenewpatentpolicy,suchasonthebasisofthepreviousIEEEpatentpolicy.WithnumerousknownSEPsforwhichtherearenolicensingcommitments,theaboveamendmentstothe802.11standardhaveonlybeen“conditionallyapprove[d]”bytheIEEE-SA’sStandardsBoard.7

5https://asoft20107.accrisoft.com/atfrand/clientuploads/news/IPlytics_2017_Patenting%20and%20standardization%20activities%20at%20IEEE.pdf6Thispaper’sauthorrecognisesthatalargeproportionofimplementersarealsopatentowners.7http://standards.ieee.org/about/sasb/1216sasbmin.pdf#page=22

Certicom was acquired by BlackBerry (RIM). LOA request for the Certicom SEPs in 802.11ai was sent to BlackBerry but was not provided

Page 4: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

3

ConditionalapprovalsaremerelydeferraltacticsbecausetherecanbenoreasonableexpectationthattheLOAconditionspreventingfullapprovalwiththenewpatentpolicywilleverbemet.PatentholderswhohavesubmittednegativeLOAsarenotgoingtochangetheirmindsandreplacethemwithpositiveLOAsintheprevailingcircumstances.Similarly,itseemsveryunlikelythatthosewhoacknowledgereceiptofarequestforanLOAbutrefusetosubmitapositiveLOAarelikelytochangetheirmindsaboutdoingsoandsubmitapositiveLOA.Deferringfullapprovaluntilthesetwoamendmentsarerolledupintothenextversionoftheentirestandard(i.e.802.11/D10)amountsto“kickingthecandowntheroad.”8

ThisimpassehasoccurredbecausemanycontributorstoIEEEstandardsare,independentlyofeachother,unwillingtopledgeassurancesunderthenewpatentpolicy,whichwasestablishedwithoutconsensus9amongaclosedgroupofinterestedparties.Thenewpatentpolicytextispurportedtobea“clarification”ofexistingpatentpolicyandnotanewpatentpolicy—beggingthequestionwhymanyofthenewpositiveLOAssubmittedmerelyrestatepreviousLOAsalready-submittedpursuanttothepreviouspatentpolicyneededtobesubmittedatall.Itis,instead,increasinglycreatingambiguitiesandconcernsthatcourtsmightinterpretnewconditionsasmandatory.Manypatentownersareunwillingtoagreetothenewpatentpolicybecausebeingboundbyitcouldunderminetheirlicensingbusinesses—includingpre-existingagreements.

AdjustedLOAcountshavereduceddramaticallysinceintroductionofnewpatentpolicy

ThecountsofsubmittedLOAshavebeenmisleadinglypresentedtosuggestthatthenewpatentpolicyishavingnooveralladverseeffectonlicensingcommitments.ThenumbersofacceptedLOAssincethepatentpolicychangehavebeeninflatedbyalargeproportionof“duplicate”LOAs(resubmissionsofLOAsforstandardsforwhichtherearealreadyexistingLOAs)thatarenotrequiredbyIEEEbylaws.Instead,aftersomewell-justifiedadjustmentstoLOAcountsfortheseandfornegativeLOAsand“missing”LOAs(incaseswhereIEEEsoughtfromadisclosedessentialpatentholder,butdidnotreceive,anacceptedLOA),figuresindicatethatLOAsaredramaticallyandstatisticallysignificantlylowersincethepatentpolicychange.Thisindicatesmajoradverseeffects.

8“Putoffconfrontingadifficultissueormakinganimportantdecision,typicallyonacontinuingbasis.”OxfordLivingDictionaries.9Tomaskit,inthefallof2014,theIEEE-SAremovedthemost-prominentindicationofitspreviouslylong-standingprinciplesofconsensus,dueprocessandopennessfromitswebsite.Seecomparativewebsitesnapshotshttp://web.archive.org/web/20140723051820/http://standards.ieee.org/about/strategy.htmlversusnewpage:http://standards.ieee.org/about/strategy.html.

Page 5: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

4

Chart2:RejectionofIEEE’snewpatentpolicyisindicatedbydramaticfallinpositiveLOAs10

Continuingactivityintechnicalworkinggroups,fornow,isnoassurancethiswillpersist

Technicalworkinggroupactivityiscontinuingwhileparticipatingcompanieswaittoseeifconflictswillberesolvedsothatnewstandards,aswellasimprovementsandamendmentstoexistingstandards,willbeapproved.However,anysuggestionsthatthecontinuingrateofProjectAuthorizationRequests(PARs)—tocommitIEEE-SAresourcestonewstandard-developmentwork—indicatethatalliswellinIEEEstandardisationarephoney.ManyIEEEprojectsdonotincludemany,orevenany,patentedtechnologies:so,thesemightbeunaffectedbydifficultieswiththenewpatentpolicy.Thestandardsthatprovidesignificantinnovativevaluebeyondcompatibilityarerichinpatentedtechnologies.LOAsidentifythesepatents,theirownership,andthebasisuponwhichtheycanbelicensed.Forthosestandardisationprojectsthatincludesignificantpatentedtechnologies,itiswhatisoccurringwithLOAs,ratherthatPARs,thatspellstrouble.

ItcouldbeseveralyearsbeforeitisevidenthowmuchIEEEstandardisationhasbeenharmed.Forexample,clarity(toimplementers,inparticular)couldberapidlyrestoredbyallowingpatentownersoptionallytoindicatetheirwillingnesstolicensebasedontheoldpatentpolicy.Meanwhile,IEEEstandardisationworkincludingsupportingR&DandproductimplementationwillsufferasparticipantsconsiderswitchingtootherSDOs.Bythenitcouldbetoolatetofixthings.

10StandardEssentialPatents–theempiricalrecordsinceadoption.SymposiumonAntitrust,StandardEssentialPatents,andtheFallacyoftheAnticommonsTragedy,Berkeley,CA.October29,2016.[UpdatedMarch,2017]RonD.Katznelson,Ph.D.*http://bit.ly/IEEE-LOAs

Page 6: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

5

1. IEEE’snewpatentpolicyismuchmorerestrictive

InMarch2015,IEEEsignificantlyamendeditspatentpolicyinan“update”thatseekstosignificantlyrevisecommitmentsfrompartiesholdingpatentclaimsessentialtoIEEEstandardstolicensethoserightsonreasonableandnon-discriminatory(RAND)termsthatexcludeanyvalueattributabletothestandard,requirelicensingatthesmallestsaleablepatentpracticingunitlevel,anddenytheserightsholdersentitlementtoseekaninjunctionagainstanunlicensedimplementeruntilappellatereviewisexhausted.IEEE’sstatedobjectivewastoprotectimplementersfrompatentholdup,whichwasallegedwithoutsubstantiation.Whatitreallywantsistounderminestandard-essentialpatentvaluesandtheabilityofSEPownerstoreceiveadequatecompensationfromlicensingtheirSEPs.11

Inthefaceofsignificantresistance,andviaahighlycontroversialandsecretiveprocess12,thenewpatentpolicysignificantlyrestrictedflexibilityintheRANDcommitmentwiththefollowingconditions:

• SEPholdersmustwaivetheirrightstoseekanyinjunctionsuntiltheyhavesuccessfullylitigatedclaimsagainstunlicensedimplementerstoconclusioninacourtofappeals;

• Royaltycharges“should”becalculatedbasedonthe“smallestsaleable”implementationofanyportionofthestandardandcomportwithareasonableaggregateroyaltyburdenoftherelevantstandard;

• OnlylicensesforwhichSEPholdershaverelinquishedtherighttoseek,enforce,oreventhreaten,aninjunctioncanqualifyas“comparablelicenses”fordeterminingRANDroyalties;and

• Reciprocalcross-licensingcannotberequired,exceptforpatentsreadingonthesamestandard.

The“update”alsoobligespatentholderstobeboundbytheIEEERANDcommitmenttolicensetheirpatenttoany“CompliantImplementation,”meaningthatapatentholdermakingsuchacommitmentcannotopttolicenseitspatentsforusingtheIEEEstandardsatcertainlevelsofproduction.13Someimplementersarehopingtoforcelicensingcostsdownbyinsistingonlicensingatthechiplevelinsteadofthedevicelevel.AlltheaboveconstraintsarecountertomostcommonindustrypracticesestablishedovermanyyearsoflicensingSEPsreadingonstandardsdevelopedbyIEEEandmanyotherSDOs.AsnotedbyGregSidakofCriterionEconomics,thepatentpolicychanges‘purporttomitigatetheriskofpatentholdupandroyaltystacking—theoreticallyandempiricallydisputedconjectures,whichpostulatethatSEPholdersroutinelyextractsupracompetitiveroyaltiesfromtheimplementersofastandard.Infact,the[patentpolicychanges]broadenthebindingprovisionsoftheIEEE’sFRAND

11Theextentoftherevisionscanbeseeninthefollowingredline:http://grouper.ieee.org/groups/pp-dialog/drafts_comments/SBBylaws_100614_redline_current.pdf.12SeeGeorgeWillingmyre,GivingProcessItsDueWhenanSDOChangesRulesOfTheGame(January2017)availableathttps://www.ip-watch.org/2017/01/22/giving-process-due-standard-development-organization-changes-rules-game/andalsoasSSRNWorkingPaperNo.2903602(23January,2017)availableathttps://papers.ssrn.com/sol3/papers.cfm?abstract_id=2903602. 13TheIEEERANDCommitmentobligatesapatentholdertomakeavailablealicense“tomake,havemade,sell,offertosell,orimportandCompliantImplementationthatpracticestheEssentialPatentClaimforuseinconformingwiththeIEEEStandard.”CompliantImplementationisdefinedas“anyproduct(e.g.,component,sub-assembly,orend-product)orservicethatconformstoanymandatoryoroptionalportionofanormativeclauseofanIEEEStandard.”

Page 7: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

6

commitment,diminishtheSEPholder’sabilitytoenforceitspatentrights,andunambiguouslylowertheroyaltiesthattheSEPholdermaychargealicensee.’14

WhileSDOshavesignificantlatitudeinmakingpatentpolicychanges,IEEEhasdonethiswithdisregardfortheopenandconsensus-basedprinciplesthatallSDOsusuallyfollow.AsalsonotedbyGregSidak,‘[o]newouldexpecttheprocesswherebyanSSOamendsitsbylawstobeconsensus-drivenandsupportedbynolesserprotectionsthanthosethatsafeguarditsstandardsetting.Yet,scrutinyoftheprocessbywhichtheIEEEamendeditsbylawsin2015revealsthattherewasexanteintensedissentamongadiscretesubsetofmembersoftheStandardsBoard,andtherewereexpostdeclarationsbythosesamemembersthattheywouldnotadheretocertainnewpricingrulesembeddedinthebylawamendments.ThosemembersassertedthattheprocessbywhichtheIEEEamendeditspatentpolicydidnotcomplywiththeprinciplesofopenness,consensus,balance,dueprocess,andrighttoappealthatareconsistentwiththeIEEE’sstandard-settingprocess.The2015bylawamendmentsdeviatedfromthesafeguardsthattheIEEEhadguaranteeditsmembersinboththefoundationaldocumentsoftheIEEEanditshistoryofconsensus-drivenpolicymaking.’15

Therearenumerouspitfallsforpatentlicensors.Forexample,ifaSEPholderpledgesnewRANDcommitmentsincompliancewiththenewpatentpolicy,itwillinmanycasesbeofferingmorefavourablelicensetermsthanthosealreadygrantedunderlegacyRANDagreementsforthesameSEPs.TheSEPholderisthereforeatriskofbeingdeemedtobediscriminatingagainstthelegacyimplementers,inviolationofitscommitmentstolicenseundernon-discriminatoryterms.Thiscouldexposenumerouspre-existinglicensestolegalchallenges.

Evenproponentsofthenewpolicyarealsolamentingthislackofclarity,whiletryingtousethisasapretexttobreachbindingcontractualagreementsmadebetweenIEEEandpatentownersinpreviously-acceptedLOAs.16IEEEcannotimposechangestopre-existingcontractsbetweenIEEEandpatentownerswithouttheirconsent,whichwouldnotbeforthcominginmostcases.

2. AdverseprecedentsinotherSDOswithwidespreadresistancetopatentpolicychanges

HistorydoesnotbodewellforthelongevityofthischangetoIEEE’spatentpolicy.AccordingtoresearchbyRonKatznelson,‘[s]ince2012,respondingtopressuresfromvariousstandardsimplementers,theInternationalTelecommunicationUnion(ITU)andtheEuropeanTelecommunicationsStandardsInstitute(ETSI)haveconsideredamendingtheirpatentpoliciestodefinethemeaningofFRAND.However,intellectualpropertyrightscommitteesofITUandETSIdeclinedtoadoptsuchamendments,perhapsbecausenoevidenceofpurportedpatent“holdup”waseverproduced.ThiswasnotthefirstoccasionthatETSIhadentertainedfurtherdefinitionofFRAND.Suchproposedamendmentsweremadein1993,2003,and2006;theywereintenselycontroversialwithinETSI,andultimatelydidnotsurvive.Since2007,ETSIGuideonIPRsspecificallydisclaimsanymorespecificdefinitionofFRAND,statinginsteadthat“suchcommercialtermsareamatterfordiscussionbetweentheIPRholderandthepotentiallicensee,outsideofETSI,”andthat“[s]pecificlicensingtermsandnegotiationsarecommercialissuesbetweenthecompaniesandshallnotbeaddressedwithinETSI.”MostotherSDOshavesimilardisclaimers.’(Citationsomitted.)17

14https://www.criterioneconomics.com/docs/antitrust-divisions-devaluation-of-standard-essential-patents.pdf15https://www.criterioneconomics.com/docs/bias-to-suppress-royalties-for-standard-essential-patents.pdf16Seesupranote5March2017slidesbyCiscoathttp://grouper.ieee.org/groups/pp-dialog/email/pdf6eBTMFaO8V.pdf,http://grouper.ieee.org/groups/pp-dialog/email/msg00437.htmlandcommentsinresponseathttp://grouper.ieee.org/groups/pp-dialog/email/msg00418.html.17RonD.Katznelson,“PerilousDeviationfromFRANDHarmony–OperationalPitfallsofthe2015IEEEPatent

Page 8: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

7

ResistancetoIEEEpatentpolicychangeshasbeenstrongandsustainedsincetheoutset.ByApril2015,Nokia,Ericsson,andQualcommeachhadstatedpubliclytheirunwillingnesstolicensetheirtechnologiesessentialtotheIEEE’s802.11(i.e.WiFi)standardunderwhattheyregardedasnewpatentpolicyrules,andInterDigitalhadwrittentoIEEE-SAindicatingitssimilarunwillingness.18Inaddition,Alcatel-Lucent(nowownedbyNokia),Blackberry,IBM,NokiaSiemensNetworks(awhollyownedsubsidiaryofNokia),Orange,Panasonic,SanDisk,Fraunhofer,GeneralElectricandHuaweihavealsoopposedwhattheygenerallyregardaspatentpolicyrevisions.19MostoftheabovefirmsholdsignificantSEPportfoliosincludingthosereadingonIEEEandotherSDOs’standards,andsomegenerateappreciablenetroyaltyrevenuesthroughlicensingsuchportfolios.

3. LOAsindicatesignificantunwillingnesstograntlicensesonbasisofupdatedpatentpolicy

ResistancetothenewpatentpolicyamongSEPownersisillustratedbytherisingfloodofnegativeLOAs.ThishasbecomeincreasinglyapparentaftersomeSEPownershavewaitedfordevelopmentofnewstandardsoramendmentssuchas802.11ahand802.11aibeforesubmittingnewLOAs.SomeSEPownersjustifiablybelievethatLOAsacceptedbeforeMarch2015remainsubjecttothepreviouspatentpolicyandhavenotyetfeltitnecessarytosubmitnewLOAsforapreviouslyapprovedstandardorforpreviouslydeclaredpatents(includingblanketdeclarations).

[SinceMarch2015,manynegativeLOAsubmissionshavebeenrejectedbyIEEEfornotbeingcompliantwithitsLOAform.TheserejectedsubmissionsarenotvisiblepubliclyonlineintheIEEEstandardsdatabase.IEEEhasroutinelyandpedanticallyrejectednegativeLOAformsthathaveincludedadditionaltext,attachments,orURLsindicatingwillingnesstolicenseonalternativeterms,suchasinaccordancewiththepreviouspatentpolicy.

However,oncepurgedofthisusefulinformation,negativeLOAshavebeenacceptedbyIEEEandpostedonitswebsite.AdditionalacceptedLOAswilllikelyfollowwhenmoreSEPownersrecognisethefutilityoftryingtoindicatewillingnesstolicenseonanalternativebasisandinsteadsubmittoIEEE’srestrictiveform-filingrequirements.Inthe18monthsfrom1stJanuary2016to30thJune2017,32LOAswereacceptedandlistedonIEEE’sonlinedatabase.Nearlyhalfofthose–i.e.47percentor15ofthem–werenegativeLOAs,indicatingthesubmitter’srefusaltopledgeRANDlicensingunderthenewpatentpolicy.]

Policy,”IEEESIIT2015,9thInt’l.Conf.onStandardizationandInnovationinInformationTechnology,Sunnyvale,CA.(Oct-8-2015)(Availableathttp://bit.ly/IEEE-SIIT-2015).18AsnotedbyGregSidak,“See,e.g.,SusanDecker&IanKing,QualcommSaysItWon’tFollowNewWi-FiRulesonPatents,Bloomberg(Feb.11,2015,11:23AM),http://www.bloomberg.com/news/articles/2015-02-11/qualcomm-says-new-wi-fi-standard-rules-unfair-may-not-take-part;RichardLloyd,EricssonandNokiatheLatestToConfirmThatTheyWillNotLicenseUndertheNewIEEEPatentPolicy,IAM(Apr.10,2015),http://www.iam-media.com/blog/detail.aspx?g=d07d0bde-ebd6-495a-aa72-4eecb9dac67d;LetterfromLawrenceF.Shay,Exec.VicePresidentofIntellectualProp.,InterDigital,Inc.,toDavidLaw,Pa-tentComm.Chair,IEEE-SAStandardsBd.(Mar.24,2015),availableathttp://wpuploads.interdigital.com.s3.amazonaws.com/uploads/2015/03/Letter-to-IEEE-SA-PatCom.pdf.”19StandardEssentialPatents–theempiricalrecordsinceadoption.SymposiumonAntitrust,StandardEssentialPatents,andtheFallacyoftheAnticommonsTragedy,Berkeley,CA.October29,2016.[UpdatedMarch,2017]RonD.Katznelson,Ph.D.*http://bit.ly/IEEE-LOAs

Page 9: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

8

Chart3:LOAsacceptedbyIEEEduringthe18-monthperiodfrom1stJanuary2016to30thJune2017(---802.11standard;---non-802.11standard)

Standard Submitter

LetterType

Date LinktoLOA

1. 802.11af Nokia Negative13January

2016https://standards.ieee.org/about/sasb/patcom/negative-loa-802_11af-nokia-13Jan2016.pdf

2. 802.11ad Nokia Negative13January

2016https://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ad-nokia-13Jan2016.pdf

3. 802.1br WolframKress2

patents3February

2016http://standards.ieee.org/about/sasb/patcom/loa-802_3br-kress-03Feb2016.pdf

4. 802.16.1 Nokia Negative18March2016

https://standards.ieee.org/about/sasb/patcom/negative-loa-802_16_1-nokia-18Mar2016.pdf

5. 802.11n Nokia Negative18March

201https://standards.ieee.org/about/sasb/patcom/negative-loa-802_11n-nokia-18Mar2016.pdf

6. 802.11ai Microsoft4

patents12April2016

https://standards.ieee.org/about/sasb/patcom/loa-802_11ai-ms-12Apr2016.pdf

7. 802.16sFullSpectrum

Inc.3

patents25July2016

https://standards.ieee.org/about/sasb/patcom/loa-802_16s-fullspectrum-25Jul2016.pdf

8. 802.3NextekPowerSystems,Inc.

9patents

29July2016https://standards.ieee.org/about/sasb/patcom/loa-802_3-nextek-24Jul2016.pdf

9. 802.21 ETRI Blanket3August2016

https://standards.ieee.org/about/sasb/patcom/loa-802_21-etri-03Aug2016.pdf

10. 802.21.1 ETRI Blanket3August2016

https://standards.ieee.org/about/sasb/patcom/loa-802_21_1-etri-03Aug2016.pdf

11. 802.11ax ETRI Blanket23August

2016https://standards.ieee.org/about/sasb/patcom/loa-802_11ax-etri-23Aug2016.pdf

12. 802.15.3e ETRI Blanket24August

2016https://standards.ieee.org/about/sasb/patcom/loa-802_15_3e-etri-24Aug2016.pdf

13. 802.3cbMarvell

SemiconductorBlanket

26August2016

https://standards.ieee.org/about/sasb/patcom/loa-802_3cb-marvell-26Aug2016.pdf

14. 802.11ah Ericsson Negative27

September,2016

http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ah-ericsson-27Sep2016.pdf

15. 802.11ax Ericsson Negative27

September,2016

http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ax-ericsson-27Sep2016.pdf

16. 802.3 ADTRAN,Inc. Blanket5October,

2016http://standards.ieee.org/about/sasb/patcom/loa-802_3-adtran-05Oct2016.pdf

17. 802.11ah Nokia Negative7October,

2016http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ah-nokia-07Oct2016.pdf

18. 802.11ai Nokia Negative7October,

2016http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ai-nokia-07Oct2016.pdf

Page 10: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

9

Ifonefocusesonthe802.11WiFistandard,almostthreequarters(i.e.11ofatotalof15-or73percent)oftheLOAsacceptedoverthesameperiodwerenegativeLOAs.Ericsson’sandInterDigital’sareblanketLOAs,sotheirrefusaltograntRANDlicensesunderthenewpolicycouldrelatetodozensifnothundredsofpatents.

19. 802.11azIHPGmbH 1patent

10November,

2016https://standards.ieee.org/about/sasb/patcom/loa-802_11az-IHP-10Nov2016.pdf

20. 802.3bwMicrochip Blanket

18November,

2016https://standards.ieee.org/about/sasb/patcom/loa-802_3bw-microchip-18Nov2016.pdf

21. 802.3bpMicrochip Blanket

18November,

2016https://standards.ieee.org/about/sasb/patcom/loa-802_3bp-microchip-18Nov2016.pdf

22. 1838

Mentor

Graphics2

patents31January,

2017https://standards.ieee.org/about/sasb/patcom/loa-1838-mentor-31Jan2017.pdf

23. 802.3bu Broadcom Blanket28February,

2017https://standards.ieee.org/about/sasb/patcom/loa-802_3bu-broadcom-28Feb2017.pdf

24. 802.11ax KAIST 3March2017

https://standards.ieee.org/about/sasb/patcom/loa-802_11ax-KAIST-03Mar2017.pdf

25. 802ax.11ax InterDigital Negative15March2017

http://standards.ieee.org/about/sasb/patcom/neg-loa-802_11ax-IPH-15Mar2017.pdf

26.

C57.147and

C57.155CooperPower

Systems

3patents

RF 5April2017https://standards.ieee.org/about/sasb/patcom/loa_c57-155_05Apr2017.pdf

27.

C57.147and

C57.155CooperPower

Systems Negative 5April2017https://standards.ieee.org/about/sasb/patcom/neg-loa_c57-155_05Apr2017.pdf

28. 802.11n Orange Negative19May2017

http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11n-orange-part1-19May2017.pdf

29. 802.11n Orange Negative19May2017

http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11n-orange-part2-19May2017.pdf

30. 1901 Orange Negative13June2017

https://standards.ieee.org/about/sasb/patcom/negative-loa-1901-orange-part1-13Jun2017.pdf

31. 1901 Orange Negative13June2017

https://standards.ieee.org/about/sasb/patcom/negative-loa-1901-orange-part2-13Jun2017.pdf

32. 802.11ad Nokia Negative20June2017

https://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ad-nokia-20Jun2017.pdf

Page 11: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

10

Chart4:LOAsacceptedbyIEEEinthe18-monthperiodfrom1stJanuary2016to30thJune2017(---802.11standardonly)

Furthermore,aftermakinglegitimateadjustmentstothecountsofLOAs,therehasbeenastatisticallysignificantreductionintotalLOAseversinceintroductionofthenewpatentpolicyinMarch2015.ThisisrevealedinanalysistoMarch2017byRonKatznelson.Hissummaryresultsappearinthefollowingtwocharts.

Standard Submitter

LetterType

Date LinktoLOA

1. 802.11af Nokia Negative13January

2016https://standards.ieee.org/about/sasb/patcom/negative-loa-802_11af-nokia-13Jan2016.pdf

2. 802.11ad Nokia Negative13January

2016https://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ad-nokia-13Jan2016.pdf

3. 802.11n Nokia Negative18March2016

https://standards.ieee.org/about/sasb/patcom/negative-loa-802_11n-nokia-18Mar2016.pdf

4. 802.11ai Microsoft4

patents12April2016

https://standards.ieee.org/about/sasb/patcom/loa-802_11ai-ms-12Apr2016.pdf

5. 802.11ax ETRI Blanket23August

2016https://standards.ieee.org/about/sasb/patcom/loa-802_11ax-etri-23Aug2016.pdf

6. 802.11ah Ericsson Negative27

September2016

http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ah-ericsson-27Sep2016.pdf

7. 802.11ax Ericsson Negative27

September2016

http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ax-ericsson-27Sep2016.pdf

8. 802.11ah Nokia Negative7October

2016http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ah-nokia-07Oct2016.pdf

9. 802.11ai Nokia Negative7October

2016http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ai-nokia-07Oct2016.pdf

10. 802.11azIHPGmbH 1patent

10November

2016https://standards.ieee.org/about/sasb/patcom/loa-802_11az-IHP-10Nov2016.pdf

11. 802.11ax KAIST Blanket3March2017

https://standards.ieee.org/about/sasb/patcom/loa-802_11ax-KAIST-03Mar2017.pdf

12. 802.11ax InterDigital Negative15March2017

http://standards.ieee.org/about/sasb/patcom/neg-loa-802_11ax-IPH-15Mar2017.pdf

13. 802.11n Orange Negative19May2017

http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11n-orange-part1-19May2017.pdf

14. 802.11n Orange Negative19May2017

http://standards.ieee.org/about/sasb/patcom/negative-loa-802_11n-orange-part2-19May2017.pdf

15. 802.11ad Nokia Negative20June2017

https://standards.ieee.org/about/sasb/patcom/negative-loa-802_11ad-nokia-20Jun2017.pdf

Page 12: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

11

Chart5:UnwillingnesstoacceptIEEE’snewpatentpolicyisindicatedbydramaticfallinadjustedLOAcounts

Source:RonKatznelson20

Inthisanalysis,negativeLOAs—therewereveryfewofthembeforeintroductionofthenewpatentpolicy;andtheyarecommonplacethereafter—arecountednegatively.“Missing”LOAs—incaseswhereIEEEsoughtfromadisclosedessentialpatentholder,butdidnotreceive,anacceptedLOAasofMarch15,2017—arealsocountednegatively.Thisanalysisdoesnotcount“duplicate”LOAsthatareLOArestatementsforwhichaspecificorblanketLOAonapatentorapendingpatentapplicationwaspreviouslyacceptedfromthesamepatentholder.Morethan100oftheseblanketLOAsarefromIntel:theywerenotrequiredbyIEEE;buttheymisleadinglyinflatethecountofLOAssubstantiallyifincluded.Also,asdiscussedbelow,theirnecessityisquestionablegiventheassertionthatthenewpatentpolicyisnotanewpolicybutamereclarification.

Accordingtoadvocatesofthenewpatentpolicy,includingIEEEexternalcounselMichaelLindsay,itspurposeis,ostensibly,toprovidemore“clarity”.21Ifitisonlyclarificationandnotoutrightpatentpolicychange,thereisnogoodreasontosubmitnewblanketLOAsforeachofnumerousamendmentstostandardssuchas802.11.22Theupdatedpatentpolicycertainlyreadslikeapatent

20StandardEssentialPatents–theempiricalrecordsinceadoption.SymposiumonAntitrust,StandardEssentialPatents,andtheFallacyoftheAnticommonsTragedy,Berkeley,CA.October29,2016.[UpdatedMarch,2017]RonD.Katznelson,Ph.D.*http://bit.ly/IEEE-LOAs21https://www.ip-watch.org/2016/03/03/ieee-patent-policy-changes-seek-to-put-brakes-on-surging-litigation/22Forexample,withthenewpatentpolicy,IntelhasinflatedthetotalnumberofblanketLOAs,includingthoseithassubmittedfor802.11,whicharemorethandoubleanyothercompany.IthasdonethisbysubmittingseparateblanketLOAsforamendments,corrigenda(correctionstoprintingerrors),editions,orrevisionstothisexistingIEEEStandardfor

Page 13: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

12

policychangetome,aspresumablyitwouldtomost10-yearolds,andthe“redline”comparingthetwoshowsthatmorethanhalfofthetexthaschanged.23However,IntelcannothaveitbothwaysbysubmittingnewblanketLOAstoboostthenumberof“positiveLOAs”asifitisapatentpolicychangewhilealsomaintainingthatitisonlyaclarificationofexistingpatentpolicy.

Chart6:UnwillingnesstoacceptIEEE’snewpatentpolicyisindicatedbydramaticreductioninadjustedLOAcounts

Source:RonKatznelson

Thestatisticalsignificanceoftheseresultsisveryhigh,asindicatedintheAnnex.

whichithadalreadysubmittedLOAsbeforeMarch2015(e.g.for802.11aa,802.11ac,802.11ad,802.11af,802.11ah,802.11ai,802.11k,802.11n,802.11n,802.11r,802.11s,802.11u,802.11v,802.11w,802.11y,802.11z).IthasalsopursuedthistacticwithotherIEEEstandards.23Aredlinecompareversionofthenewpolicytothepreviousoneisavailableathttp://grouper.ieee.org/groups/pp-dialog/drafts_comments/SBBylaws_100614_redline_current.pdf

Page 14: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

13

4. AnalysisbasedonIPlyticsfiguresrevealsthatlargeproportionsofpatentsandpatentownersarenotpledgedtothenewpatentpolicy

IPlyticswascommissionedbyInteltoproduceareportonpatentingandstandardizationatIEEEincludingLOAs.24ItincludesmanychartsshowingnumbersofLOAs,patents,andpatentfamiliesbycompanyandbyyear.IhavereproducedseveralofthesewithmyadditionofsomeidentifiersandannotationsquantifyingwhereLOAs,patents,andpatentownersarenotpledgedtothenewpatentpolicyandwhereLOAcountshavebeensubstantiallyinflated(i.e.byIntel’snumerousblanketLOAsubmissionsfollowingthepatentpolicychangein2015).

Charts7to12arecopiesofIPlyticsreportfigures2,4,6,7,9and10(comprisingonlyblackandgreencolouring),towhichIhaveaddedemboldenedred,purple,blueandbrownidentifiersandannotations.

Chart7:Morethanonethird(10/24=42%)ofcompaniesIPlyticsportraysasleaderswithLOAstoIEEEstandardsareunwillingtopledgetheirSEPsunderthenewpatentpolicyorhavenotprovidedLOAswhenaskedtodoso

Source:IPlyticsempiricalstudyreportonpatentingandstandardisationactivitiesatIEEE25(blackandgreen);WiseHarboraddedCharttitlesinboldblack,identifiersandannotationsinothercolours.OrangeisthesuccessortoFranceTelecom.“Notapplicable:”PositiveblanketLOAacceptedpriortoMarch2015underpreviouspatentpolicy.

24EmpiricalstudyonpatentingandstandardizationactivitiesatIEEE,Dr.TimPohlmannIPlyticsGmbH-March2017-https://asoft20107.accrisoft.com/atfrand/clientuploads/news/IPlytics_2017_Patenting%20and%20standardization%20activities%20at%20IEEE.pdf25https://asoft20107.accrisoft.com/atfrand/clientuploads/news/IPlytics_2017_Patenting%20and%20standardization%20activities%20at%20IEEE.pdf

Certicom was acquired by BlackBerry (RIM). LOA request for the Certicom SEPs in 802.11ai was sent to BlackBerry but was not provided

Page 15: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

14

Chart8:Aroundonethird(6/19=32%)ofcompaniesIPlyticsportraysastop-20withblanketLOAsfor802.11arenotagreeingtothenewpatentpolicy

*Withthenewpatentpolicy,IntelhasinflatedthetotalnumberofblanketLOAs,includingthoseithassubmittedfor802.11,whicharemorethandoubleanyothercompany.IthasdonethisbysubmittingseparateblanketLoAsforamendments,corrigenda(correctionstoprintingerrors),editions,orrevisionstothisexistingIEEEStandardforwhichithadalreadysubmittedLOAsbeforeMarch2015(e.g.for802.11aa,802.11ac,802.11ad,802.11af,802.11ah,802.11ai,802.11k,802.11n,802.11r,802.11s,802.11u,802.11v,802.11w,802.11y,802.11z).IntelhasalsopursuedthistacticwithotherIEEEstandards.

Chart9:Approximatelyonequarterofessentialpatentsandessentialpatentfamiliesreferencingthe802.11standardwerefiledbycompaniesnotagreeingtothenewpatentpolicy

Page 16: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

15

Chart10:Morethanonequarterofspecifically-declaredSEPsandSEPfamiliesforthe802.11standardwerefiledbycompaniesnotagreeingtothenewpatentpolicy

PanasonichasalsoopposedtheIEEE’snewpatentpolicy.

Chart11:ThecompaniesfilingLOAswithpatentnumberincludedareoverwhelminglythosewhoarefilingnegativeLOAsorhavepubliclyopposedIEEE’snewpatentpolicy

NokiacompleteditsacquisitionofAlcatel-Lucentin2016.PanasonicandFraunhoferhavealsoopposedIEEE’snewpatentpolicy.

Asindicatedpreviouslyandillustratedagainbelow,itisblanketLOAs,notspecificdeclarations,thatareinflated.TheIPlyticsreportmightbecorrectinstatingthat“specificdeclarationsmustbeupdatedeachtimeanewessentialpatentisidentifiedevenastothesamestandard,whereasblanketdeclarationsdonotneedsuchupdatingforthesamestandardor,insomecases,evenforamendmentsthereto”(emphasisadded),butIPlyticsincorrectlyinfersfromthisthat“itisnotsurprisingthatapreferenceforspecificpatentdeclarationscouldleadtoaninflatedLOAcount.”

Page 17: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

16

Tothecontrary:

• LOAsaremissingfromIBMandHP,whohavepreviouslysubmittedspecificdeclarations,indicatingunwillingnesstolicensebasedonthenewpatentpolicy.

• ItisIntel—favouringthenewpatentpolicy—thathasfloodedandinflatedLOAsubmissionswithblanketLOAsthatareunnecessary(asIPlyticscorrectlynotes).

• Intel’sblanketLOAsalonerepresentedthreequartersofallLOAsacceptedin2015.

Chart12:IntelaccountedforthreequartersofLOAssubmittedin2015:Itmassivelyinflatedthetotalwithmorethan100blanketLOAsoutofatotalof138LOAsthatyear

TheIPlyticsreportmissesthepointaboutSEPdeclarationratetrends.AccordingtoIPlytics,‘evenacceptingthatLOAsweredownsomewhatatIEEEin2016,therearereasonstothinkthat“LOAcounting”isnotaparticularlymeaningfulmethodologyforevaluatingthehealthofanSSO.Forexample,atETSI–whichhasbeencitedasanexampleofahealthyandsuccessfulSSO–bothIPRDeclarationsandthenumberofdeclaredpatentfamiliesweredownsignificantlyin2015and2016comparedtoeachofthetwoprioryears.’InsteadofallthatwiththesignificanttemporalebbsandflowsinSDOactivity,togetherwithcorrespondingratesofpatentingandoverwhelminglypositivepledgestoETSI’sIPRpolicy,theissueatIEEEisnumerousnegativeandmissingLOAswithmanycompaniesanddeclarationsnolongerexplicitlypledgedtoanypatentpolicy.

InstandardsdevelopmentatIEEE:

• NegativeLOAsallownoalternativepatentpolicytoapplyanddonotallowforprocompetitiveexantedisclosureofanylicensingterms;

• MissingLOAscanpreventapprovalofthestandardoramendmentstoitandarealreadypostponingapprovalof802.11aiand802.ahwith“conditionalapproval,”whichisafudgeandplayingfortime;

• StatusofsomeLOAs(positiveandnegative)andapplicablepatentpolicyhasbecomeindeterminatesinceintroductionofthenewpatentpolicy;

Page 18: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

17

• MissingandnegativeLOAsthreatenfutureimplementationofIEEEStandards,includingWiFi;and

• MuchlowerLOAcounts(aftereliminatinginflationaryLOAeffectsofduplicateLOAsandreflectingthenatureofnegativeandmissingLOAs)areamajorsymptomofproblemsarisingfromintroductionofthenewpatentpolicythroughaflawednon-consensusprocess;apolicythatwasnotwantedbyatleastalargeminorityofSDOparticipants.

ThesituationisalsoproblematicforaccreditationofIEEEstandardsbyotherstandardsorganizations,whichisusually,forexample,withtheoldpatentpolicy,aroutinematter.Forexample,ANSIrequiresthatstandardsdonothavenegativeormissingLOAs.26IEEEwouldnotbeabletojustifyunderANSI’sGuidelinesthatit“reasonablybelievesthe[802.11/D10standard]meetsthecriteriaoftheANSI[PatentPolicy].”27

5. Wheredowegofromhere?

ThereisdeadlockbetweenthosewhoembraceandthosewhorejectIEEE’snewpatentpolicy.Anynotionthatalliswell,forexamplebecausetechnicalworkinggroupsarestillactive,isanillusion.TheaccumulatingnumberofnegativeLOAsillustratesmountingconflicts,theunacceptableuncertainties(atleastinthemindsofimplementers)aroundapplicablepatentpolicyorpolicies,andtheincreasingimperativeforapatentpolicychangereversal.Theoutlookis:

1. Logjamindefinitely.NotwithstandingIEEEfailingtomeetitsrequirementthatSEPsbepledgedunderacceptedLOAs,newstandardsandamendmentsmightormightnotgetadoptedandimplemented,orwilldosomoreslowly.Thiswillbeamuchmoreuncertainlicensingenvironmentthanhitherto.Delaysandprobablysignificantlitigationwilloccurbeforeclarityandcertaintyisrestored.ThenaturalresultofsuchasituationwouldbeforIEEEstandardstobecomelessandlessfavoured,giventhatopenaccesstothemisincreasinglynolongerassured.Or,acoupleofwaysout:

2. Agreetodiffer.Makeoptionalityclearandexplicit.RANDalreadyencompassesthepossibilityofroyaltyfreelicensingforthosepatentownerswhowouldliketolicenseonthatbasis.WithanewLOAform,patentownerscouldchoosetolicenseonthebasisof(i)theoldpatentpolicy,(ii)newpatentpolicy,or(iii)royalty-freeterms;or

3. Revert.Reintroducethepreviouspatentpolicy.

ThereisapressingexistentialthreattoIEEEasaforumfordevelopmentofhigh-qualityopenstandardsincorporatinginnovativeandvaluablepatentedtechnology.TheambiguitieswithLOAsandapplicablepatentpolicyarebecomingincreasinglyapparentandproblematic.TheIEEEgotintothisdirepredicamentonlybecauseacollectionofIEEEmemberspushedthroughmajorchangestothepatentpolicywhilesupressingthenormalprocessofconsensus,transparency,andopennessthatSDOsincludingIEEEroutinelyemployinselectingtechnologiestomakethebeststandards.

26GuidelinesforImplementationoftheANSIPatentPolicy,2016p4;https://share.ansi.org/Shared%20Documents/Standards%20Activities/American%20National%20Standards/Procedures,%20Guides,%20and%20Forms/ANSI%20Patent%20Policy%20Guidelines%202016.pdf27Id.p4p8;

Page 19: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

18

ShameonIEEEforlettingthathappen;butitisnotyettoolatetomakeamends.IEEEmustrestoreclarityandpredictabilitytothetermsuponwhichthevastmajorityofSEPsreadingonitsstandardscanbelicensedfromthevastmajorityofSEPowners.IEEEhasdevelopednumeroushighly-successfulstandardsthathavenotbeenimpededbypatentlicensingunderpreviousarrangements.Thereisnoreasonwhyitshouldnotresumedoingthatorsomethingquitesimilar.

Nothingwasbrokenbeforethepatentpolicychangesoughttofixthings.Forexample,billionsofpeopleuseWiFiatverymodestcosts.Butthatisastorythatcouldtakeupanotherentirereport.

Page 20: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

19

Annex:StatisticalsignificancetestingbyRonKatznelsononhisownLOAanalysis

Page 21: Development of innovative new standards jeopardised by IEEE … · 2018-12-31 · IEEE standards are unwilling to pledge their SEPs under the new patent policy or have not provided

20

Aboutthisarticleanditsauthor

Thisarticlewascommissionedby4iPCouncil28andwrittenbyKeithMallinsonofWiseHarbor.

KeithMallinsonisfounderofWiseHarbor,29providingexpertcommercialconsultancysince2007totechnologyandservicebusinessesinwiredandwirelesstelecommunications,mediaandentertainmentservingconsumerandprofessionalmarkets.Heisanindustryexpertandconsultantwith25yearsofexperienceandextensiveknowledgeoftheICTindustriesandmarkets,includingtheIP-rich2G/3G/4Gmobilecommunicationssector.HisclientsincludeseveralmajorcompaniesinICT.Heisoftenengagedasatestifyingexpertwitnessinpatentlicensingagreementdisputesandinotherlitigationincludingassetvaluations,damagesassessmentsandinantitrustcases.HeisalsoaregularcolumnistwithRCRWirelessandIPFinance–“wheremoneyissuesmeetintellectualpropertyrights.”

TheauthorcanbecontactedatWiseHarbor.Hisemailaddressiskmallinson@wiseharbor.comandyoucanalsofollowhimonTwitterathttp://twitter.com/WiseHarbor.

©KeithMallinson(WiseHarbor)2017.

28http://www.4ipcouncil.com/29http://www.wiseharbor.com/