1. DOCUMENT #:GSC15-IPR-06 FOR:Presentation SOURCE:CCSA AGENDA ITEM:6 CONTACT(S):Zhaosz@ccsa.org.cn Situations of Communications Standards and IPR in China Shizhuo Zhao CCSA Global Standards Collaboration (GSC) GSC-15

2. Guidelines for Presentation  General Information on Communications Industry and Standards;  Information on Patents Involved in Communications Standards;  Challenges and Direction 2

3. General Information on Communication Industry and Standards (1/3)  The communication industry has such characteristics as a large amount of high and new technologies, high starting point, long industrial chain, strong permeability, and obvious effect as a guidance. The development of communication industry greatly promoted the development of state economy and social progress, becomes the hametz to economic growth, transforming agent to development mode, and lubricant to industrial production.  Telephone users totaled 1.11 Billion. Fixed line users reached 306 million and mobile users reached 805 million. The penetration rate was 80 terminals per 100 persons.  The Internet users reached 420 million, increased by 36 million. The penetration rate was 31.8%. Mobile Internet Users reached 277 million. （ By the end of June 2010 ） 3

4. General Information on Communication Industry and Standards (2/3)  There are around 22000 ISPs and ICPs, in which, 1932 enterprises with trans-regional business. （ By the end of 2009 ）  The communication manufacturing industry strengthens the investment along with the 3G license releasing and service growth, which expanded domestic demand and increased the export simultaneously. in the first quarter of 2010:  — the Sales Value of communication manufacturing industry reached 193 billion yuan increased by 33%  — and the export delivery value reached 100 million yuan, increased by 2.4%. （ By the end of March 2010 ） 4

5. General Information on Communication Industry and Standards (3/3)  More than 1400 National Standards and Industry Standards were published, including 3G mobile communication, future network, transport network, Internet, broadband access, information and network security, emergency communication, information accessibility, EMC ， energy-saving and ejection-decreasing, network management and so on. （ By the end of July 2010 ）  These standards have played very important supporting role in the period of high speed and stable development of communication industry in China, as well as the introduction of new technologies and opening of services. These standards supported the government for supervision, serviced the society and consumers, and met the needs of rapid development of China's communication industry. 5

6. Information on Patents Involved in Communication Standards (1/4)  According to the WIPO’s Stats, 155.9 thousand patents applications were received in 2009, among which, 7946 patents applications were from China, ranked the fifth in the world, upgrading 1 over the previous year. And quantity grows quickly, particularly in the ICT field. The quantities of PCT patents applications from Huawei, ZTE, Datang and Tecent ranked the world top 200.  In 2009, the amount of Patent applications in communications field were 19005, among which, there are 15283 invention patents occupying 80.4% and 3722 patents of utility model. The total amount decreased comparing with that of 2008 but the proportion of invention patents increased by 3%. 6

7. Information on Patents Involved in Communication Standards (2/4)  The hot technologies in communication industry were mainly focused on WiMAX, OFDM, MIMO, MBMS, HSDPA and HSUPA and other mobile communication technologies, and HARQ as well.  Patent applications from China were mainly focused on base stations, mobile devices for users, Transmission power control for mobile communication system, channel selection and allocation, cell research, call setup and control, coverage of mobile service area, roaming, etc. 7

8. Information on Patents Involved in Communication Standards (3/4)  Quite a number of standards organizations developed IPR policies in order to treat the IPR issues in standards, and to achieve balance between patent holders and standard users. The IPR policies would be modified according to the development.  China Communications Standards Association Intellectual Property Rights Policy (for trial implementation) was issued in December, 2007 (Chinese and English versions). There are 13 Articles and 1400 characters totally among which there are 940 characters in the main text.  The policy stipulated the principle of introduction of IPR in standards, patent disclosure, patent permission and copyright, and patent transfer, etc. with a Patent Licensing Declaration form (General) and a Patent Information Disclosure and Licensing Declaration form. 8

9. Information on Patents Involved in Communication Standards (4/4)  IPR issues involved in standards have been basically dealt with by CCSA IPR Policy since its implementation.  License way: the licenses of patents of invention mostly followed the principle of RAND and that of patents of utility model are mostly for free.  Disclosure time: The enterprises were active to disclose IPR information. Usually the IPR information could be disclosed before the draft standards for review and be publicly declared and discussed in the WGs.  Detailed rules for implementation and database are under development. 9

10. Next Steps/Actions  To develop national, industrial, and SDO’s policies and regulations in dimensions and scope, which conforms to both international rules and Chinese characteristics.  To fully understanding the pros and cons of patents involved in standards and to balance the interests of patents holders and standards users, trying to protect innovation and break the monopoly.  The Standards organizations should introduce the treatment of the patent issues in standards to normal procedure of standards development, so as to make the patents issues clear, to give full play to non-governmental organizations and to reduce the business risk of the enterprises.  The enterprises need to study or carry out training on policies, procedures, way, methods and talents of patents issues in standards, to perfect and integrate all kinds of information resources including standards, patents, patents in standards WTO/TBT database, information analysis and early warning, etc. 10

11. Thanks for your attention! 11