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Slides for Class #4 ASU Technology Standards Seminar February 15, 2010 Brad Biddle. Introduction. Taxonomy / “How”. Business strategy / “Why”. Antitrust. IPR: RAND v. RF. IPR(+): “Openness”. IPR: Patent pools. Policy: private stnds & law. Policy: Role of government. Case study: China.
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Slides for Class #4 ASU Technology Standards Seminar February 15, 2010 Brad Biddle
Introduction Taxonomy / “How” Business strategy / “Why” Antitrust IPR: RAND v. RF IPR(+): “Openness” IPR: Patent pools Policy: private stnds & law Policy: Role of government Case study: China Student presentations Student presentations Student presentations *
INTELLECTUAL PROPERTY ANTITRUST / COMPETITION STANDARDS LAW Two primary ingredients
IP: monopoly Standards: joint action by competitors Antitrust: anti-monopoly Antitrust: suspicious of joint action [1] [2]
PATENT CLAIM A • SSO • PARTICIPATING FIRMS PATENT CLAIM B NON-PATENTENED TECHNOLOGY • PATENT OWNERS PATENT CLAIM C PATENT CLAIM D STANDARDS-COMPLIANT PRODUCT • SSOs OR PARTICIPATING FIRMS (POTENTIALLY) BEHAVING BADLY • Price fixing • Monopsony • Refusals to deal • TRANSACTION COST / COORDINATION ISSUES • Anticommons • Royalty stacking • Disclosure rules • Ex ante licensing • Patent pools • PATENT OWNERS (POTENTIALLY) BEHAVING BADLY • Patent hold-up / ambush
Sherman Act Section 2 monopolization claims • FTC Act Section 5 unfair/deceptive practices claims
PATENT OWNERS (POTENTIALLY) BEHAVING BADLY • Patent hold-up / ambush “During the standards setting process, Party A deceptively represented that they [had no relevant patents]/[would license on RAND terms] but now is seeking excessive post lock-in royalties.” “Party B said it would license under certain terms in the past, but now has changed its mind and is demanding more.”
V. • FTC wins administrative process, wins in district court, LOSES in appellate court, Supreme Court denies cert. • FTC: JEDEC either would have (1) chosen differently, or (2) ensured RAND; in either case, it’s a Section 2 problem • DC Cir.: if “(2)” then just a price-for-patents issue; not for antitrust law to decide
V. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1460997 http://biddle.us/uploads/QCOM_v_BCOM_548_F3d_1004.pdf
V. V. Apple: Nokia's "false" F/RAND promise "enabled Nokia to obtain the 'hold up' power it now abusively seeks to wield." http://standardslaw.org/AAPL-NOKCountersuit.pdf
SSOs OR PARTICIPATING FIRMS (POTENTIALLY) BEHAVING BADLY • Price fixing • Monopsony • Refusals to deal “The SSO has excluded my technology.” “The SSO is conspiring to set my royalties too low.”
(Soundview eventually loses, though) Soundview v. Sony
TRANSACTION COST / COORDINATION ISSUES • Anticommons • Royalty stacking • Disclosure rules • Ex ante licensing • Patent pools