Slide title minimum 48 pt Slide subtitle minimum 30 pt LICENSING AND TECH TRANSFER MAKING THE MOST OUT OF YOUR PATENT Gustav Brismark Vice President, Patent

LICENSING AND TECH TRANSFERMAKING THE MOST OUT OF YOUR PATENT

Gustav BrismarkVice President, Patent Strategy & Portfolio Management

Ericsson AB

Managing Intellectual Property

International Patent Forum 2011

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THE USE OF PATENTS

› A patent gives the right to exclude others

› In telecom, patents are licensed


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END-USER VALUE

Co-operation in an open innovation process in telecom on new standards provides economy-of-scale

It reduces the risk and investment for new entrants and increases competition

The standard specification is the basis for technology transfer through licensing

The value an end-user derives from a service increases when the number of other users using the same kind of service increases


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TECHNOLGY TRANSFER – THROUGH FRAND LICENSING

Source: Internal Ericsson

Excluding M2M connections

FRAND licensing is a mass market enabler

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2008 2009 2010 2011 2012 2013 2014 2015

Rep

ort

ed

Su

bsc

rip

tions

(m

illio

n)

LTE/TD-LTE

WCDMA/HSPA

GSM/GPRS/EDGE

TDSCDMA

Mobile WiMAX

CDMA

Other

Reported subscriptions per system standard

Source: Internal Ericsson

This slide contains forward looking statements


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FRAND – WHAT DOES IT MEAN?

› FRAND commitment means no blocking patents– Essential patents licensed– Fair return on R&D investments

› Market accessible to new entrants – Tech transfer possible through Reasonable cumulative royalty

› FRAND– Gives incentive for further innovation– Makes it possible for new companies to enter the market– Has a proven track record of global market success

Fair compensation Waiving monopoly


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DEFINING FRAND

› Reasonable cumulative rates–Patent Landscape–Estimated value of technology

› Reasonable individual rate–Patent Share–Reflect the contribution

› Bilateral negotiation› Legal enforcement› Complete declarations› Evidence of essentiality


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ANTITRUST CONSIDERATIONS – TELECOM STANDARDS LIKE 3GPP

› 3GPP* standardization is a collaborative process

› Rules designed to be compliant with competition law– Membership is open to anyone– The process involves all stakeholders– Consensus driven decisions– Technical considerations only for decision making

› Members are bound by 3GPP rules– Non-members may abuse market power gained from having their

technology included in the standard– May indeed merit competition law intervention

* 3GPP is a project which has been assigned the responsibility, from regional standards bodies, to develop global specifications for GSM, WCDMA and LTE technologies


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ANTITRUST CONSIDERATIONS – STANDARDIZATION IN THE EU

› The EC has revised their guidelines on horizontal cooperation

› Among the issues raised in this context, was that of joint discussions of licensing terms

› It is Ericsson’s position that joint discussions on a reasonable maximum cumulative may lead to lower costs for consumers– Lowers barriers of entry– Increases transparency– Reduces total costs for commercialization

› Such discussions are a prerequisite to form Patent Pools

› That need has been acknowledged by EC Technology Transfer Guidelines


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FRAND – BALANCE OF INTERESTS

FRAND is intended to maintain the delicate balance between the interest of the intellectual property holder and the needs of the broader set of companies that need

access to the essential intellectual property

- “The essentials of intellectual property”, Signals Research group, 2010

EQUIPMENTindustry

IPRowner

Documents

Slide title minimum 48 pt Slide subtitle minimum 30 pt LICENSING AND TECH TRANSFER MAKING THE MOST OUT OF YOUR PATENT Gustav Brismark Vice President, Patent