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To: Dexter Lives On who wrote (742)12/8/2006 10:50:55 PM
From: waitwatchwander  Read Replies (1) | Respond to of 1002
 
IEEE Alters Its Standards Patent Policy to Provide Fuller Disclosure on Licensing

Letter Sent to Justice Department Requesting Guidance on New Policy

PISCATAWAY, N.J.--(BUSINESS WIRE)--The IEEE Standards Association (IEEE-SA) has approved a change in its patent policy effective 30 April 2007 that provides for the optional advance disclosure of ”not to exceed” licensing terms associated with patents that might be included in its standards. The change is intended to make the IEEE standards-setting process more transparent. IEEE-SA has also submitted a request to the U.S. Department of Justice for a business review letter confirming the Department’s guidance on the antitrust aspects of the new policy.

The revision to IEEE-SA’s patent policy has three key elements:

It permits and encourages the optional and unilateral ex ante disclosure of royalty rates and other license terms – that is, disclosure before a patented technology is included in a standard. The disclosed terms may include, for example, the maximum royalty rate that the patent holder will seek to charge. It improves the mechanisms for making sure that a patent holder’s assurance (which is irrevocable) fully and effectively binds subsequent owners of the patent by requiring the patent-holder to provide notice of the existence of the assurance. It strengthens provisions for binding the submitter’s affiliates to the terms of the policy, making clear that affiliates are bound unless the submitter identifies affiliates it does not wish to bind.

“This change in our patent policy is part of the ongoing evolution of our standards process,” says Judith Gorman, IEEE-SA Managing Director. “Until now, we’ve allowed the inclusion of essential patents in IEEE standards if patent holders assure us they will license their patents without compensation or with reasonable and nondiscriminatory terms (RAND). However, the lack of specific information in such assurances may create uncertainty that can impede the adoption of a standard.

“The new policy is an important step in correcting this situation through additional transparency of licensing terms for the technology alternatives being considered for inclusion in a standard. The policy should also benefit anyone who seeks to comply with IEEE standards after they are approved.”

December 04, 2006 02:02 PM Eastern Time

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