1. Innovation Food Chain Standardization and IPR Paul Jenkins Head of Strategic Programmes

2. © British Telecommunications plc Validate & Implement ChannelsProductiseInvent Create & Design Operate People & Organisation End to end Innovation Standards have a role

3. © British Telecommunications plc Service Delivery Multiple Service Elements Standards

4. © British Telecommunications plc Service Innovation – new function

5. © British Telecommunications plc Service Innovation – new interface

6. © British Telecommunications plc Service Innovation – large changes

7. © British Telecommunications plc Service Innovation Food Chain New Standards Productise InventCreate & Design Existing Standards

8. © British Telecommunications plc Food Chains

9. © British Telecommunications plc Service Innovation Food Chain New Standards Productise InventCreate & Design Existing Standards

10. © British Telecommunications plc Service Innovation Food Chain New Standards Productise InventCreate & Design Existing Standards

11. © British Telecommunications plc Different RoI Models Service Revenue In Own Market Potential large return –Longer timescale Standards grow Market Simple license agreement –Grow market –Indirect advantages Know-how Back-end Integration Licensing Revenue Market independent Better cash flow –Shorter timescale Standards grow licence revenue Complex license agreements –Maximise licence revenue –Standardisation difficult case by case choice

12. © British Telecommunications plc IPR and Standards are not mutually exclusive Innovation builds on standards Standardization inhibited by Drive for shorter term RoI Multiple patents Complex patent ownership Use based licensing Standards Bodies responding ITU, ISO, IEC common process But Implementation varies Other processes still unchanged Some SBs shying away

13. © British Telecommunications plc Summary Successful Innovation will involve Research and Standardisation Over-complex licensing requirements inhibit standards implementation No simple solution –Free licences would drive research away from independent bodies –Insufficient RoI dries up research –Unimplementable standards prevents delivery of innovation We cannot afford to ignore this

14. © British Telecommunications plc