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International Telecommunication Union New Delhi, India, 19-20 December 2011 ITU Workshop on Standards and Intellectual Property Rights (IPR) Issues Dr.

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Presentation on theme: "International Telecommunication Union New Delhi, India, 19-20 December 2011 ITU Workshop on Standards and Intellectual Property Rights (IPR) Issues Dr."— Presentation transcript:

1 International Telecommunication Union New Delhi, India, December 2011 ITU Workshop on Standards and Intellectual Property Rights (IPR) Issues Dr. Ir. Serge RAES, Intellectual Property & Standards Manager France Telecom Orange Patent Pool: a possible means to reduce aggregated royalties

2 International Telecommunication Union New Delhi, India, December 2011 Internal Organization IP & Licensing R&D Research & Strategy Legal IP ProcurementOrange Labs & Network Carriers Standardization & Ecosystems Dev. IP & Standardization Co-Ordination

3 International Telecommunication Union Generalised model for rapid licensing PRODUCTS / SERVICES Ready made tools for fast technology transfer: - « shop window of the technology » - Collective Licensing Agreement IPR Policy : Fair, Reasonable and Non- Discriminatory (FRAND or RAND) Technical standards making Standards bodies (ITU, ETSI, ANSI, ARIB, GISFI ? ) Industry clubs (TM Forum, IPTV Forum, IEEE, IETF) Missing Link ? Existing Structure 3G LTE Patent Pools

4 International Telecommunication Union Quantification of RAND LICENSING ADMINISTRATION PATENT EVALUATION MECHANISM IPR POLICY OF STANDARDS BODIES (SDO) STANDARDS BODIES (ITU, ETSI, ANSI, ARIB, GISFI ? ) Licensing scheme: Maximum Aggregated Royalty Evaluates Patent Essentiality Basic IPR Policy Standards making « added value » PATENT POOL

5 International Telecommunication Union 3G LTE situation : Acquiring Essential Patent licenses each Company must negotiate best deal 1 : 1 3G LTE Patent Pools MAR x % >> Essential Patents Owners >562 patent families declared (756 for GSM and 1605 for UMTS) Total IPR Cost ?? x % ? x % + ? MAR = Maximum Aggregated Royalties

6 International Telecommunication Union License scope and Royalty base: patent rights exhaustion 30 Essential Patents 60 Essential Patents Manufacturer 1 Manufacturer 2 Service + Application Provider 1 FINISHED MANUFACTURED PRODUCT WITH A SALES PRICE RANGE OF SELLABLE SERVICES Manufacturer 3 Final Manufacturer Operator 1 9 Essential Patents 1 Essential Patent Supply Chain Added Value within Supply Chain MANUFACTURING CHAIN SERVICE PROVISION CHAIN CONSUMER Licenses obtained by Final Manufacturer protect all Operators, Service Providers and Consumers

7 International Telecommunication Union Patent Pool Suppliers Benefits Eliminates existing licensing negotiation deficiencies (e.g. unfair, discriminatory, complicated, time consuming, expensive) Catalyses market growth through easier access to technology Reduces exposure to patent infringement litigation though global license coverage Minimises Essential Patent cost as a real competitive cost element Reduces substantially the internal licensing and negotiation costs Knowledge of which patents are essential and their holders No competition issue associated with classical Patent Pools Retains total control over your own IPR

8 International Telecommunication Union Patent Pool Operators Benefits Reduce investment cost for the acquisition of the infrastructure Creates a more favorable business case, arising from more affordable technology cost, which will stimulate market launch and growth Removes uncertainty concerning patent infringement litigation which could impact on the service provision Defines a more certain and deterministic Essential Patents environment for the planning of new commercial services Increases the choice among competitive suppliers globally Creates a more favorable stock market view for the standard Removes the hassle of Essential Patent portfolio management Retains total control over your own IPR

9 International Telecommunication Union Collective Licensing: Conclusions Patent Pool is not a panacea ! Bilateral licensing negotiation will continue Large patent holders will likely stay outside Not a remedy against Non-Practicing Entity Collective Licensing Agreements may still improve : new features exploring other business strategies (e.g. defensive Patent Pools) in 2012, 3G LTE Patent Pools defined

10 International Telecommunication Union Thank you Serge RAES Intellectual Property & Standards Senior Manager c/o France Telecom - Orange Office IB 313T rue du Général Leclerc F Issy Les Moulineaux France Tel: Fax:


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