An Introduction to CCSA IPR Policy Dr. Junqi XU General Counsel China Communications Standards Association April 21, 2017

Contents Overview of Chinese Standards and Patent Key points of CCSA IPR policy The implementation of CCSA IPR Policy The initiative in the future

Summary of ICT standards involving patents in China China has the largest network and subscriber base in the world so far. The number of The fixed and mobile subscribers is over 1.5 billions, the internet users about 900 millions;divergent telecom and internet services grows fast, esp. instant message services,online shopping,mobile payment ,video communication,etc.. To support the development of telecom network and services, over 3600 standards have been developed in China in recent years, mostly in the areas of LTE,SDN,PTN,IOT,Cloud Computing,Network safety and information security, mobile internet and IPv6,to name just a few. According to statistics by WIPO in 2014, the PCT patent application by China accounts for 11.9% of world total, and digital communication technology and compture technology rank top 2. A report by EPO shows that the patent application by Chinese companies ranks No. 4 in 2014, and Huawei,ZTE and Tencent are the most active.

Overview of CCSA IPR Policy A standard-essentional patent(SEP) is indispensable to the implementation of an ICT standard. In order to address the intellectual property rights issues in the standardization process, most of SSOs have developed their own ipr policy. Based on the China‘s situation and experiences from other SSO’s IPR policy, CCSA IPR Policy (for trial implementation) approved by the Council of CCSA in November 2007, was promulgated. This is the first IPR policy developed by a stantand-setting body in China, and laid solid pratical foundation for the Standard Administration of PRC in drafting its national standards.

Key points of CCSA IPR Policy(1) CCSA IPR Policy (for trial implementation) consists of 13 articles, mainly dealing with patents related to standard on issues such as principle,disclosure,licensing,copyright, transfer and exemption of CCSA. Also, Template for Patent Information Disclosure and Licensing Declaration Form is annexed to constitute part of CCSA IPR Policy. Disclosure-- CCSA encourages Members to early disclose information of patents related to Standard known by Members and their Affiliates, as well as information of patents which are related to Standard or Documentation and provided by Members or their Affiliates to other standard organizations. However this Article 3 does not imply any obligation for a Member to conduct any patent searches.

Key points of CCSA IPR Policy(2) Licensing--Members and their Affiliates who hold patents related to Standard shallsubmit patent licensing declaration to CCSA The licensing declaration shall make statement on one of the following: (1) willing to grant a free-of-charge license to any parties who implement the Standard. (2) willing to grant a license under fair, reasonable and non-discriminatory terms and conditions to any parties who implement the Standard. (3) unwilling to grant a license. denial of licensing——When a patent holder is unwilling to grant a license under a patent related to Standard, CCSA shall review that Standard in order to seek a viable alternative technology, suggest the authorities of the state revoke the Standard, or take other effective ways to solve the problem.

Key points of CCSA IPR Policy(3) Copyright--- CCSA shall own the copyright of the documentation and Standards created by CCSA or its Working Organizations. The copyright of the Standards approved and released by relevant government authorities belongs to the authorities concerned. Transfer——After making the license declaration, if the patent transfer to another person or entity, the patent holder guarantee, the transferee is still bound by this license statement. Exemption——CCSA will not be involved in licensing negotiations in the implementation of Standards, which should be conducted between the patent holders and the other parties implementing the Standard. Any disputes on patent issues arising from the implementation of a Standard should be handled by the other authorities concerned.

The implementation of CCSA IPR Policy With the support of its members, CCSA IPR policy has been well implemented since it came into effect in 2007. CCSA introduces and clarifies its IPR policy to chairmans, group leaders and members involved in standardization process.CCSA requires that at any stage of standard formulation, if a company wants to disclosure their patent, it should notify to the working group immmediately and submit its patent licensing declaration. CCSA has already addressed 62 standards involving patents including 210 patents and patent applications. Standards involving patents mainly cover mobile multimedia, broadband access, Ethernet, IPV6,digital trucking ,encryption, e-mail, cable, SCDMA,etc.. Patents/Patent applications mainly refer to inventions, only a few of utility models. Patent licensing are mainly conducted uner FRAND terms and conditions, some free-of-charege licenses, such as ZUC. 2017/4/21

The new development of SSOs' IPR Policy An SSO's IPR policy draws high attention not only because it maintains the balance of interests between SEP holders and implementers but also it is an important consideration for administrative authorizes or courts to make their adjudication or judgment. After CCSA promulgate and implement its IPR policy in 2007, SAC and SIPO issued < Regulatory Measures on National Standards Involving Patents> in 2003; SAC issued GB/T 20003.1-2014<Special procedures for the development of standards—Part 1:Standard related to patents> in 2014, which regulates special procedures of formulation or revision of standards involving patents. SSOs' IPR policy need to be improved continually. Accordingly,ITU,ETSI and IEEE hold meetings to discuss their IPR Policy, and the heated topics concern SEP, FRAND, reciprocity, transfer, license fee and injunction. ITU approved the amendment of patent transfer in June 2014. The FRAND principle and reasonable rate are partially clarified by the revision of IEEE IPR policy in February ,2015. 2017/4/21 9

Future work orientation Standards and patents are both critical isses nowadays,especially in ICT industry,which has and are experiencing fierce patent competition and tremendous patent lawsuits. It is rather tough to deal with the intellectual property rights issues in the standardization process, and diverse agencies are being involved, such as legislature, courts, but also many administrative agencis like commerce department, patent offices,etc.. In the light of the need to balance the competing interests of SEP holders and standards implementers, and aiming to develop standards that reflect the best available technical solutions, SS0s should scrutinize the advantages and disadvantages of its IPR policy.Especially, An SSO should be very cautious in playing its role in intervening the interests of different parties. SSO shall clarify and imporve its IPR policy on the basis of current situation and make it more clear, definite and pratical. CCSA will look forward to continuing discussions on the changes of SSOs' IPR policy and will improve its IPR Policy tiemly. 2017/4/21 10

Thank you！ Dr. Junqi XU General Counsel, CCSA xujunqi@caict.ac