Slide title 70 pt CAPITALS Slide subtitle minimum 30 pt standard essential patents: Developments in US courts & Standard Development organizations MLEX Event, Seoul (March 16, 2016) Dr. Dina Kallay Director, I.P. & Competition Ericsson

Slide title 70 pt CAPITALS Slide subtitle minimum 30 pt Patent LawContract LawAntitrust Law Damages: Factors are the same for essential patents and implementation patents Ericsson v. D-LinkEricsson v. D-Link (Fed. Cir., 2014) Comparable licenses are the #1 Georgia Pacific Factor; smallest saleable unit argument rejected CSIRO v. CiscoCSIRO v. Cisco (Fed. Cir. 2015) Main avenue for courts to analyze F/RAND commitments Courts look at the actual commitment made by patent holder (Ericsson v. D-Link, E.D. Texas, 2013)Ericsson v. D-Link Breach of F/RAND, or excessive pricing in and of itself not an antitrust violation No antitrust court ever found breach of F/RAND in and of itself to be an abuse (no agency cases either) Exhaustion rules make “smallest saleable unit” impractical (Lexmark v Impression, Fed. Cir. 2016)Lexmark v Impression Injunctions – same eBay factor analysis for essential/implementation patents Apple v. Motorola Mobility (Fed. Cir. 2014)Apple v. Motorola Mobility Right to injunction on multifaceted products recently boosted (Apple v. Samsung, Fed. Cir. 2015)Apple v. Samsung Technology users unwilling to be bound by courts’ F/RAND determination, can be found “unwilling” (Ericsson v. D-Link, E.D. Tex. 2013; Apple v. Motorola Mobility (W.D. Wis. Nov. 8, 2012)Ericsson v. D-Link U.S. Supreme Court soon to review “wilfull infringement” standard (Halo and Stryker)Halo Courts found the Noerr Pennington doctrine immunizes injunction seekers from competition claims (Apple. V. Motorola Mobility, (W.D. Wis. Aug )Apple. V. Motorola Mobility No antitrust court ever found the seeking of injunctions to be an antitrust violation (two FTC consents, both based on S. 5 of FTC Act)

Slide title 44 pt Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt Characters for Embedded font: !"#$%&'()*+,-./ :; WXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª« ¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛ ÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċ ČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒ œŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒˆˇ˘˙˚˛ ˜˝ẀẁẃẄẅỲỳ–— ‘’‚“”„†‡…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚ ĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞ ŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻ−≤≥fifl ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰα βγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧ ШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽẀẁ ẂẃẄẅỲỳ№ Do not add objects or text in the footer area Procompetitive beneffits of standardization – US Sources “Standards can make products less costly for firms to produce and more valuable to consumers. They can increase innovation, efficiency, and consumer choice; foster public health and safety; and serve as a “fundamental building block for international trade” DOJ & FTC, A NTITRUST AND I NTELLECTUAL P ROPERTY Report (2007) “Voluntary consensus standards serve the public interest in a variety of ways, from helping protect public health and safety to promoting efficient resource allocation and production by facilitating interoperability among complementary products” USPTO & DOJ Policy Statement on Standard-essential Patents (2013)

Slide title 44 pt Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt Characters for Embedded font: !"#$%&'()*+,-./ :; WXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª« ¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛ ÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċ ČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒ œŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒˆˇ˘˙˚˛ ˜˝ẀẁẃẄẅỲỳ–— ‘’‚“”„†‡…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚ ĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞ ŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻ−≤≥fifl ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰα βγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧ ШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽẀẁ ẂẃẄẅỲỳ№ Do not add objects or text in the footer area Procompetitive beneFfits of standardizatiaon – EU & Korea “Standardisation agreements usually produce significant positive economic effects”, and standards normally “increase competition and lower output and sales costs, benefiting economies as a whole. Standards may…enhance quality, provide information and ensure interoperability and compatibility (thus increasing value for consumers) EC Horizontal Co-operation Agreements Guidelines (2011) ¶263 “Standard technologies are crucial as they improve compatibility of technologies, thus increasing economic efficiency, and promote the development and use of technologies” KFTC Draft Guidelines on Unfair Exercise of I.P. Rights (2015) ¶5

Slide title 44 pt Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt Characters for Embedded font: !"#$%&'()*+,-./ :; WXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª« ¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛ ÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċ ČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒ œŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒˆˇ˘˙˚˛ ˜˝ẀẁẃẄẅỲỳ–— ‘’‚“”„†‡…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚ ĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞ ŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻ−≤≥fifl ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰα βγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧ ШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽẀẁ ẂẃẄẅỲỳ№ Do not add objects or text in the footer area New IEEE Patent policy – A natural expriment in Reverse Hold-up ›Collective closed door change of patent policy at IEEE; restricted participation in revision process, non-transparent, non consensual process and unbalanced representation ›Development process not in line with WTO Technical Barriers to Trade (TBT) due process principles ›As a result, the new policy framework serves only the interests of technology-users ›Later procedural changes, adopted in closed doors, make ex ante disclosure of competing licensing terms effectively impossible

Slide title 44 pt Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt Characters for Embedded font: !"#$%&'()*+,-./ :; WXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª« ¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛ ÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċ ČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒ œŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒˆˇ˘˙˚˛ ˜˝ẀẁẃẄẅỲỳ–— ‘’‚“”„†‡…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚ ĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞ ŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻ−≤≥fifl ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰα βγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧ ШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽẀẁ ẂẃẄẅỲỳ№ Do not add objects or text in the footer area Anticompetitive Effects: on F/RAND assurances ›Publicly available documents reveal a growing number of companies decline to provide F/RAND assurances to IEEE under the new policy, including: Blackberry, HP, IBM, Microsoft, Nokia, Texas A&M, and Qualcomm ›Ericsson also declined to provide F/RAND assurance under the new policy, but IEEE refuses to post this information on its website ›Rumors of additional companies refusing to provide F/RAND assurances. But no public information available. This adds to the uncertainty for manufacturers → F/RAND-assurance -based open standrdization eco- system breaking down

Slide title 44 pt Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt Characters for Embedded font: !"#$%&'()*+,-./ :; WXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª« ¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛ ÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċ ČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒ œŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒˆˇ˘˙˚˛ ˜˝ẀẁẃẄẅỲỳ–— ‘’‚“”„†‡…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚ ĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞ ŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻ−≤≥fifl ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰα βγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧ ШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽẀẁ ẂẃẄẅỲỳ№ Do not add objects or text in the footer area Anticompetitive Effects: on standards development (1) ›Number of negative LoAs have increased ›Working group chairs are spending much more time managing IP related discussions/items → less time for technical work ›Number of IP related Standards Board executive sessions dramatically increased; As a result, responsiveness of Standards Board to the standards developers is reduced ›Uncertainty whether standards will be ratified when there are missing LOAs; unclear if many years of work will lead to a ratified standard

Slide title 44 pt Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt Characters for Embedded font: !"#$%&'()*+,-./ :; WXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª« ¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛ ÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċ ČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒ œŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒˆˇ˘˙˚˛ ˜˝ẀẁẃẄẅỲỳ–— ‘’‚“”„†‡…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚ ĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞ ŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻ−≤≥fifl ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰα βγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧ ШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽẀẁ ẂẃẄẅỲỳ№ Do not add objects or text in the footer area Anticompetitive Effects: on standards development (2) › Participants have requested clarifying feedback on the policy from leadership, but not received any response, leaving participants unsure how to proceed with their standards development activity ›Non-responsiveness lead to considerable debate and confusion among ah participants resulting in the delay of its completion ›Loss of market momentum for ah standard ›The dynamics of collaboration have changed