Session 3: IPRs panel discussion not consensus, just some things that were said: Increasing, unbounded cumulative royalty rate The consumer pays Challenges new entrants Industry groups bringing specifications to SDOs. Limits the opportunity for contribution Systemised insertion of IP Killing the reward for innovation Why make product? How to ensure efficient identification of IPRs without spending too much on performing searches. IPR and licensing is a growing issue. Companies are now controlling their declarations and being more specific toward particular standards and terms. What about benchmarking "good practice" Reasonable costs Service aspects versus cost

Session 3: IPRs panel discussion Re. codec choice - in the past we looked at best technology not cost – should we now look at cost & technology when choosing (beauty-contest)? ex-ante disclosures to aid technology choice (for single solutions, e.g. codecs) Standards meetings of engineers is not the place to discuss commercial issues (licensing terms/royalties). Operators want to know the costs & terms up-front - ex-ante licensing. Want more predictability. ETSI GA ad hoc is looking at this but what is the solution - ex-ante? ex-ante agreement for royalty-cap for systems but should agreement be within SDO or as external agreement. if within SDO then not in technical committees

Session 3: IPRs panel discussion How to enhance IPR issues without discouraging people from coming to SDO. Royalty-cap may even be a double-sided sword. total royalty-cap may discourage new players individual royalty-cap may encourage new players DG Competition support SDO discussions and are watching but will only intervene if it looks like there could be a problem with EU Competition Law (= US anti-Trust).

Session 3: IPRs panel discussion Look for more collaboration between SDOs & patent offices Patents searches can bring benefits but only applies to published patents and published applications and are not waterproof. fast-track search procedure! might not be too costly and give some feeling of confidence how much would the SDO members be willing to pay ? Search SDO working docs to find IPR issues and stock sharks. Sharks/Trolls sharks appear when standard is implemented. can patent offices help identify "known sharks"? can EPO perform patent searches to help identify new sharks? external sharks = third-parties (outside of SDO) internal sharks = SDO members - may be breaching competition law trolls buy IPRs to make money = can be external and internal