3GPP LTE IPR: "Minimum Change, Optimal Impact" ...
.... is being proposed to ETSI by Ericsson, Nokia and Motorola as an alternative to the operators proposal of a pre-agreed cumulative cap of somewhere between 3 and 5 per cent on the cost of all LTE equipment, as well as an 'ex ante' (beforehand) approach to declaring all relevant patents.
Minimum Change, Optimal Impact is based on the principles of "aggregated reasonable terms" and "proportionality."
"Aggregated reasonable terms mean that when determining what cumulative value should be assigned to patents on a given technology in an end-product, licenses required in all the other necessary technologies and overall business conditions should be taken into account," says Nokia. "The principle of proportionality means that the royalty rate a patent holder deserves is proportional to the share of that patent holder's essential patents on the technology in question." - Nokia -
The following is extracted from Informa's "3G Mobile Research Service" ...
>> Vendors Seek Compromise on LTE
Informa Telecoms and Media
20 March 2006
Since a group of operators submitted a proposal to ETSI calling for a cap on intellectual-property rights for patents essential to the 3GPP-based radio standard's long-term evolution, it has emerged that a group of suppliers led by Ericsson, Nokia and Motorola has presented a counterproposal dubbed "Minimum Change, Optimal Impact."
Nokia told 3G Mobile sister title Global Mobile that Minimum Change, Optimal Impact is based on the principles of "aggregated reasonable terms" and "proportionality."
"Aggregated reasonable terms mean that when determining what cumulative value should be assigned to patents on a given technology in an end-product, licenses required in all the other necessary technologies and overall business conditions should be taken into account," says Nokia. "The principle of proportionality means that the royalty rate a patent holder deserves is proportional to the share of that patent holder's essential patents on the technology in question."
The vendors also want to introduce a mechanism for improving the transparency of ownership of relevant IPRs to put the principle of proportionality into practice. Kasim Alfalahi, Ericsson's vice president for IPR, licensing and patent development, says the operators' proposal to introduce an ex ante cumulative cap will not work in practice and is impossible to implement.
Alfalahi adds that a number of operators are now in favor of the Minimum Change, Optimal Impact proposal after the ETSI working group met in France last month for its second discussion regarding IPRs. "There was a lot of progress made at the [end-February] meeting," he says. "There is a lot of convergence around our proposal."
For Minimum Change, Optimal Impact to work, it will need the support of all operators, including Vodafone, T-Mobile and Orange.
Speaking at the 3GSM World Congress in Barcelona last month, Hamid Akhavan, CTO of T-Mobile, told Global Mobile that the operators had accelerated discussions on IPR so as to reach an agreement before an LTE work plan is created in June or - more likely - September. Nevertheless, he said they would delay finalization of standards until IPR is solved.
Alfalahi says that he is not surprised by the operators' efforts and that a number of them have been "shocked" by the level of royalty payments levied on WCDMA equipment. "But that is not because of Ericsson and not because of Nokia," he maintains. "They are shocked because of one other company's attitude."
The "one other company" is Qualcomm. But CDMA will be removed from Radio Layer 1 of LTE and replaced with OFDM and MIMO, negating much of Qualcomm's influence in the IPR debate.
"If Qualcomm don't sign up, then they have to stand outside the standard," says Alfalahi. "And if you remain outside, then you have to decide what it means to be outside."
Mike Hartogs, Qualcomm's vice president and counsel for new license business, told Global Mobile that the ETSI discussion topics are still being decided upon. "Everyone is looking at a variety of proposals, some similar, some complementary and some contradictory," he says. "We will participate in the process and share our views." <<
The above extracts are from 3G Mobile Research Service, for more information and a trial click ...
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