IP analytics to maximize your business potential TheInterplayof Patents and Standards DIN FNS- 01-20-2015 Dr. Tim Pohlmann Managing Director IPlytics GmbH 1
Standards and Patenting Technology standards are indispensable for the interoperability among systems Innovative technologies are often protected by patents Companies may have strategic incentives to file patents essential for standards Fear that patentees hold monopolies for a technology and create lock-in situation 2
Standard Essential Patents Standard Essential Patents claim an invention that must be used by any company to comply with a technical standard Thus, someone would necessarily infringe SEPs when adopting the standard o We differentiate between: Technical Essentiality = SEP must be used to technologically comply with the standard Economic Essentiality = SEP must be used because developing an own standard implementation is economically more expensive 3
Interplay of Patents and Standards Patents: o Exclusive rightsgranted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention Intended to allow its owner excluding others from using the protected invention Standards: o Common platform or specification of a technology to connect, communicate and work on a common basis Encourage the spread and wide implementation of the standardized technology 4
Licensing SEPs o FRAND(Fair, Reasonable and Non discriminatory) o FairOnly essential essentialno bundling no grant backs mandatory exclusivity o ReasonableWhat is a reasonable royalty? How to measure royalty stacking? o Non-discriminatoryLicensorsmust treat each individual licensee in a similar manner 5
SEP Royalties 0 % 5 % 10 % 15 % 20 % 25 % GSM, no cross licensing Typical 8% GSM, cross licensing Typical 4% GSM/UMTS, no cross licensing Typical 12% GSM/UMTS, cross licensing Typical 9% LTE (only), no cross licensing LTE (only), cross licensing Typical 11%? 6
SEP Royalties 7
SEP Royalties 8
SEP Declarations 120.000 100.000 107. 262 6.000 5.000 4.958 80.000 4.000 60.000 3.000 40.000 20.000 0 ETSI 23.962 2.000 1.000 0 1.973 1.133 667 524 334 276 134 101 48 26 24 18 1 Declared SEPs SEP Families 9
SEP Declarations Qualcomm Inter Digital LG Electronics Nokia Samsung Ericsson Huawei Technologies Panasonic NTT DOCOMO, INC. Motorola NSN Research in Motion SONY NEC Corporation Sharp Optis Cellular Technology, LLC Philips Siemens ZTE Corporation CATT Thomson Consumer Electronics 4.862 4.728 3.824 3.656 2.608 2.542 2.497 2.241 2.139 2.011 1.667 1.595 1.476 1.144 1.123 13.107 11.215 10.720 8.891 8.310 21.459 0 5.000 10.000 15.000 20.000 25.000 SEP Families Declared SEPs 10
Problems and Solutions for SEPs Problems No transparency which patents are standard essential and need to be licensed Especially new market entrants find it difficult to oversee which patents to license Legal uncertainty may lead inefficiencies and a competitive disadvantage Solution Most firms try to stay under the radar! Small firms are not observed by bigger players Litigation is expensive and usually aims to fight big market players Best Practice Solution Upfront know how about the extent of SEPs IPlytics Patents and Standard Platform: https://platform.iplytics.com/ 11
IPlytics platform solution IPlytics hosts the largest patents and standards database 12
IPlytics platform solution Search for Companies, Technologies or Industries Sort results by patent value (TR), market coverage (MC) or search relevance 13
Visualizations Analyze the Market 14
Visualizations Track developments over time 15
Visualizations Rank Portfolios 16
Visualizations Measure competition 17
Visualizations Identify markets 18
Please request a trial version under: https://platform.iplytics.com/ Or Email us under info@iplytics.com 19
Thanks for your attention! Dr. Tim Pohlmann, Ackerstrasse 76, 13355 Berlin, Germany Telefon: +49 314 78924, Web: www.iplytics.com, Email: pohlmann@iplytics.com 20