ITU Workshop on Standards and Intellectual Property Rights (IPR) issues IPR in ICT standards View ’ s of the European Commission Anne Lehouck New Delhi, India, December 2011

Europe 2020 strategy Innovation union: Research : dynamic standardisation system Industrial policy : Competitiveness: standardisation system responsive to changining world Digital agenda : interoperability and e-services via global standards with adequate IPR treatment

Standards – patents/IPR: apparent conflict? Patents protect indivitual rights Standards : knwoledge distribution Innovation : patent protection and ways to validate patents in Europe Interoperability:standards but patent free or royalty free? /

Key concepts: European standardisation policy Support Innovation and competitiveness response to societal expectations Support public interest demand but Adhere to competition rules Open and Transparent processes

IPR concerns in ICT standardisation Fast evolving technologies and increasing complextity of ICT applications,increasing need for interoperability, increasing need for standards Patents can be used in standards but balance rights patent owners and patent users – FRAND

IPR concerns in ICT standardisation Increasing number of patents Emergence of new business models : Open source solutions Long,cumbersome negotiations between licensees and licensors high costs Increasing number of complaints about IPR abuse Public authorities to take action? To legislate?

Competition policy rules 1957 : treaties of Rome Prohibit anti- competitive agreements and abuse of dominant position ( art 81 and 82 EC treaty ) December 2009 Lisbon treaty enters into force. Art 81 and 82 EC become art 101 and 102 of the Treaty on the Functioning of the European Union (TFEU)

Competition rules- horizontal co- operation agreements New rules adopted 14 December 2010; the standardisation chapter sets out the « safe harbour » criteria Recognises the benefits of standardisation as tool to support in novation and competitiveness Open, transparent and voluntary standards setting and accessible standards

Competition rules- horizontal co- operation agreements If IPR involved, clear and binding IPR policy  FRAND committement (includes RF)  In case of royalties, disclosure obligation in the SDO’s IPR policy Guidance on ex ante disclosure of most restrictive licensing terms

European ICT standardisation policy proposed regulatory package com(2011)311 and 315 Increasing need for standards to respond to interoperability expectations *Recognition of fora and consortia specifications under specific conditions for referencing in public policies and public procurment

European ICT standardisation policy Compliance with competition rules via « attributes » IPR policy FRAND including RF Compliance with competition rules via « attributes »

Attributes Annexe II of proposed regulation Specifications have market acceptance Developped by a non profit making organisation, not a formal standardisation organisation, on a voluntary basis Openess:, Consensus Transparency & Maintenance Availibility IPR essential to implementation are FRAND including RF Relevance Neutrality and stability Quality

ICT standardisation platform Expert group set up by Commission’s decision (COM 215 (2011) Members: representatives of Member States, standards setting organisations, industry and societal stakeholders (67) Chair and secretariat: commission services DG ENTR and DG INFSO Scope: monitoring ICT standardisation policy Advice on evaluation and selection of ICT specification First meeting: March 2012

Actions on IPR /ICT standards To further increase transprency and predictability 1)2010 : Common EPO/Commission workshop : problems? Patent related issues- cooperation SDO and Patent offices ex ante declaration of max licensing rights continuity of licensing committements next business models such as OSS 2)2011: Workshop ex ante *ex ante disclosure of rights is obligatory *Ex ante declaration of max licensing conditions: optional 3)2011: Common EPO / Commission conference *Role of public authorities when referencing standards in policies otr public procurment

2012 actions Common EPO/ Commission workshop Can patent pools increase transparency and predictability ? FRAND and other business models End 2012: evaluation by Commission services

Thank you very much for your attention Anne Lehouck DG Enterprise D3: