Managing Intellectual Property International Patent Forum 2011 Slide subtitle

LICENSING AND TECH TRANSFER

MAKING THE MOST OUT OF YOUR PATENT Gustav Brismark Vice President, Patent Strategy & Portfolio Management

Ericsson AB

Slide title

THE USE OF PATENTS

› A patent gives the right to exclude others › In telecom, patents are licensed Do not add objects or

Slide title

END-USER VALUE

The value an end-user derives from a service increases when the

number of other users

using the same kind of service increases Do not add objects or 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

Slide title

TECHNOLGY TRANSFER

– THROUGH FRAND LICENSING Excluding M2M connections 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2008 Reported subscriptions per system standard 2009

2010

2011 2012 2013 2014 LTE/TD-LTE WCDMA/HSPA GSM/GPRS/EDGE TDSCDMA Mobile WiMAX CDMA Other

Source: Internal Ericsson

2015 This slide contains forward looking statements Do not add objects or

FRAND licensing is a mass market enabler

Source: Internal Ericsson

Slide title

FRAND – WHAT DOES IT MEAN?

› FRAND commitment means

no blocking

– – Essential patents licensed Fair return on R&D investments patents ›

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

Do not add objects or

Slide title

DEFINING

FRAND

› Reasonable

cumulative

rates – Patent Landscape – Estimated value of technology › Reasonable

individual

– Patent Share – Reflect the contribution rate ›

Bilateral

negotiation ›

Legal

enforcement ›

Complete

declarations ›

Evidence

of essentiality Do not add objects or

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ANTITRUST CONSIDERATIONS – TELECOM STANDARDS LIKE 3GPP

Do not add objects or › 3GPP* standardization is a collaborative process › – – – – Rules designed to be

compliant

Membership is open to anyone The process involves all stakeholders Consensus driven decisions with competition law 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

Slide title

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

Guidelines Technology Transfer Do not add objects or

Slide title

FRAND – BALANCE OF INTERESTS

IPR owner EQUIPMENT industry 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 Do not add objects or