Slide title minimum 48 pt Slide subtitle minimum 30 pt LICENSING AND TECH TRANSFER MAKING THE MOST OUT OF YOUR PATENT Gustav Brismark Vice President, Patent Strategy & Portfolio Management Ericsson AB Managing Intellectual Property International Patent Forum 2011

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; VWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨ ©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ× ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀā ĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅ ņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹ źŻżŽžƒˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡…‰‹›⁄€™−≤≥fifl ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶ ĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮ ŰŰŲŲŴŴŶŶŹŹŻŻ ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФ ХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ ẀẁẂẃẄẅỲỳ№ Do not add objects or text in the footer area THE USE OF PATENTS ›A patent gives the right to exclude others ›In telecom, patents are licensed

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; VWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨ ©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ× ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀā ĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅ ņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹ źŻżŽžƒˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡…‰‹›⁄€™−≤≥fifl ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶ ĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮ ŰŰŲŲŴŴŶŶŹŹŻŻ ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФ ХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ ẀẁẂẃẄẅỲỳ№ Do not add objects or text in the footer area END-USER VALUE Co-operation in an open innovation process in telecom on new standards provides economy-of-scale It reduces the risk and investment for new entrants and increases competition The standard specification is the basis for technology transfer through licensing The value an end-user derives from a service increases when the number of other users using the same kind of service increases

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; VWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨ ©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ× ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀā ĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅ ņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹ źŻżŽžƒˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡…‰‹›⁄€™−≤≥fifl ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶ ĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮ ŰŰŲŲŴŴŶŶŹŹŻŻ ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФ ХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ ẀẁẂẃẄẅỲỳ№ Do not add objects or text in the footer area TECHNOLGY TRANSFER – THROUGH FRAND LICENSING Source: Internal Ericsson Excluding M2M connections FRAND licensing is a mass market enabler Reported Subscriptions (million) LTE/TD-LTE WCDMA/HSPA GSM/GPRS/EDGE TDSCDMA Mobile WiMAX CDMA Other Reported subscriptions per system standard Source: Internal Ericsson This slide contains forward looking statements

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; VWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨ ©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ× ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀā ĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅ ņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹ źŻżŽžƒˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡…‰‹›⁄€™−≤≥fifl ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶ ĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮ ŰŰŲŲŴŴŶŶŹŹŻŻ ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФ ХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ ẀẁẂẃẄẅỲỳ№ Do not add objects or text in the footer area FRAND – WHAT DOES IT MEAN? ›FRAND commitment means no blocking patents –Essential patents licensed –Fair return on R&D investments ›Market accessible to new entrants –Tech transfer possible through Reasonable cumulative royalty ›FRAND –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  Waiving monopoly

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; VWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨ ©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ× ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀā ĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅ ņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹ źŻżŽžƒˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡…‰‹›⁄€™−≤≥fifl ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶ ĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮ ŰŰŲŲŴŴŶŶŹŹŻŻ ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФ ХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ ẀẁẂẃẄẅỲỳ№ Do not add objects or text in the footer area DEFINING FRAND ›Reasonable cumulative rates –Patent Landscape –Estimated value of technology ›Reasonable individual rate –Patent Share –Reflect the contribution ›Bilateral negotiation ›Legal enforcement ›Complete declarations ›Evidence of essentiality

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; VWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨ ©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ× ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀā ĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅ ņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹ źŻżŽžƒˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡…‰‹›⁄€™−≤≥fifl ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶ ĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮ ŰŰŲŲŴŴŶŶŹŹŻŻ ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФ ХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ ẀẁẂẃẄẅỲỳ№ Do not add objects or text in the footer area ANTITRUST CONSIDERATIONS – TELECOM STANDARDS LIKE 3GPP ›3GPP* standardization is a collaborative process ›Rules designed to be compliant with competition law –Membership is open to anyone –The process involves all stakeholders –Consensus driven decisions –Technical considerations only for decision making ›Members are bound by 3GPP rules –Non-members may abuse market power gained from having their technology included in the standard –May indeed merit competition law intervention * 3GPP is a project which has been assigned the responsibility, from regional standards bodies, to develop global specifications for GSM, WCDMA and LTE technologies

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; VWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨ ©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ× ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀā ĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅ ņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹ źŻżŽžƒˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡…‰‹›⁄€™−≤≥fifl ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶ ĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮ ŰŰŲŲŴŴŶŶŹŹŻŻ ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФ ХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ ẀẁẂẃẄẅỲỳ№ Do not add objects or text in the footer area ANTITRUST CONSIDERATIONS – STANDARDIZATION IN THE EU ›The EC has revised their guidelines on horizontal cooperation ›Among the issues raised in this context, was that of joint discussions of licensing terms ›It is Ericsson’s position that joint discussions on a reasonable maximum cumulative may lead to lower costs for consumers –Lowers barriers of entry –Increases transparency –Reduces total costs for commercialization ›Such discussions are a prerequisite to form Patent Pools ›That need has been acknowledged by EC Technology Transfer Guidelines

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; VWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨ ©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ× ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀā ĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅ ņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹ źŻżŽžƒˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡…‰‹›⁄€™−≤≥fifl ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶ ĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮ ŰŰŲŲŴŴŶŶŹŹŻŻ ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФ ХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ ẀẁẂẃẄẅỲỳ№ Do not add objects or text in the footer area FRAND – BALANCE OF INTERESTS 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 EQUIPMENT industry IPR owner