1. Standards, Open Standards and IPR Paul Davey Strategic Relationships Executive Vodafone Group Plc

2. Proposition Standards make our industry work Commercially Technically The way we do standards needs to maintain the positive aspects of competitive pressure. Our standards processes are being exploited in such a way that the benefits of standardisation are being eroded. If we do not initiate change quickly the ability to initiate change will be taken away from us.

3. What is the problem? Unrealistic demands from IPR holders who control IPR in standards The OMA DRM standard uses IPR from several companies The price to our industry of the proposed licence fees are greater than the annual revenues to our industry from the activities requiring a licence. The result is that there is no competitive market for content distribution over mobile networks. 3G-PP IPR licence fees are a commercial issue that has the potential to limit competition. We need to avoid these issues in the future.

4. This is not an exercise in blame Vodafone Strongly supports the use of royalty payments to stimulate and reward innovation however…. If we agree there is a problem we must agree how we will address it. If we do not agree there is a problem, those who do agree will address it in a way we may not like. Do we agree there is a problem?

5. What could be done? Establish commercial terms from contributors before the standards are set.? participation in standards activity requires agreement to join a patent pool whose terms are pre-defined, with capped total royalties will only work if key players are prepared to join all essential IPR is in the pool Create a Private technology development and standard setting group for the operator community? Define FRAND?

6. What next? The past is gone. We are looking to the future Will the standards bodies lead the industry to find a fast resolution, or does the operator community need to lead this for itself? Doing nothing is not an option

7. Vodafone request ETSI and the EU should take the lead to work together with all parties to Clearly define the problem Understand what needs to change to prevent the problem recurring Establish a new model to manage IPR licence fees in standards Set an aggressive timetable for resolution Drive the process to completion within 12 months.