1. GSM Association Presentation to ETSI SOS Interop
IPR in Standards
David O'Byrne
20 September 2005

2. Emerging trends in Standards
3GPP
More patents declared essential
More IPR-holding companies
Longer to reach market equilibrium
Higher IPR prices
Open Mobile Alliance DRM 2.0
No discussion of commercial model for IPR in OMA
Some patent holders declaring IPR late
Unacceptably high royalties being demanded
Market and standard delayed
Increased likelihood of fragmented market
Increased likelihood of proprietary solutions dominating

3. Summation
The unpredictable nature of the cost of IPR associated with technology standards constitutes an overhanging threat to the mobile communications industry

4. Problems Timely IPR Declaration IPR Policy Policing
All SDOs have as part of their membership a requirement for pertinent and timely IPR disclosure in any relevant work-stream.
IPR Policy Policing
Limited sanctions are available for those who breach IPR policy
IPR Indemnification
SDOs are unable to indemnify an operator if that operator uses a standard that contains at that moment undeclared IPR.

5. Problems FRAND Licensing. Essential IPR and Patents
There is no commercial definition of FRAND (Fair Reasonable And Non Discriminatory) licensing
Require an objective framework for agreeing these terms
Essential IPR and Patents 
Currently no independent examination of essentiality on patents that have been declared as essential patents
Cumulative patent royalties / “Patent stacking”
Increasing numbers of IPR holders looking for reasonable compensation
Result is costs that have an adverse effect on market growth
   

6. GSMA Objectives
Identify weaknesses in the current IPR system and act to remedy these problems in a coordinated manner, including:
Examination of modification of SDO IPR Policy
Exploring the possibility of developing a framework for setting and managing commercial terms for IPR for the benefit of the industry & consumers
Examining European, US law and guidelines on patents, patent frameworks and standards bodies

7. Scope In Scope Out of Scope
Co-ordinate an initiative to examine rules on IPR.
Examine ways to simplify IPR licensing
Explore possible regulatory changes at EU and US level to clearly modify IPR rules & define FRAND.
Out of Scope
Seek to act outside of SDOs
Seek a zero-royalty regime within SDOs
Prevent fair and reasonable rewards for IPR

8. Emerging trends in Solutions
Vodafone suggestions to SOS-Interop
Agree terms before standards are set
Capped cumulative royalties
Vigorous response to 3rd party IPR
Cisco et al, submission to FTC
Early disclosure of licence terms
SDO decisions based on all the facts
ETSI Global Standards Collaboration
Encourage transparency, FRAND and right to compensation
Oppose zero-rating and overbroad patent declaration obligations
Gil Ohana, Cisco
Art Reily, Cisco
Apple, Sun, HP, IBM, June 2005, FTC, DoJ

9. Conclusion Common ground for a solution emerging
Commercial and technical issues in SDOs
Agreement on rates of return for IPR
Patent declaration and ‘essentiality’ in realistic timeframe
Acknowledgement of the issues and cooperation on the solution is crucial
Continuation of excellent start on IPR in ETSI is very desirable

10. Thank you