Impact of SEP conflictson ICT innovation in Europe - ECis.jrc.ec.europa.eu/pages/ISG/EURIPIDIS/documents/SergeRaes_000.pdf · Impact of SEP conflictson ICT innovation in Europe

Impact of SEP conflicts on ICT innovation in Europe 1

Impact of SEP conflicts on ICT innovation in EuropeEuropean Commission: Joint Research Center, Sevilla27 October 2014

Dr. Ir. Serge RAESETSI IPR Special Committee Vice-Chair

ITU IPR Ad Hoc Group Chair, Rapporteur on Patent issues

Orangev.1.2, 26 October 2014

2 Standardization and Intellectual Property Impact_SEP_Conflicts_on_Innovation_20141027.pptx

Overview of declared SEP[Interplay between Standards and IPR, Prof. Knut Blind, April 2011]

Standard Patent family

Total patent

s


Total patent

s


Total patent

s

ETSI-UMTS 1605 2864 ETSI-GERAN 26 44 ETSI-HSPA+ 11 12ETSI-GSM 756 1333 IEEE 802.3 Ethernet 26 35 ETSI-MMB 11 16

ETSI-LTE 562 866 ETSI-GMR 23 31 ETSI-Speech Recognition 11 15

OMA (all) 266 408 IEC 65C Industrial networks

23 24 ITU-T G.991.1(HDSL) 11 20

IETF (all) 197 271 JTC 1/SC 29/WG 1 23 27 J 144 Objective video quality for CATV

11 11

IEEE 802.16 (WiMax)

105 165 ITU-H.262 MPEG-2 Video

20 25 IEEE 802.21 Media Independent Handover

10 20

IEEE 802.11 (WiFi) 98 136 ETSI-BRAN 19 31 ITU G 729 speech Coding at 8 kbit/s (for VoIP)

10 12

ETSI-SAE 87 92 ETSI-DECT 18 20 ITU JPEG XR image coding system (T JXR-2; T JXR-5)

10 16

JTC RFID 78 143 IEEE 802.1 series 17 32 ITU V.90 modem 56 kbps 9 11ITU other G series 52 69 ITU G 723.1 voice codec 17 19 ITU G.992.3 (ADSL2) 8 12

ETSI-DBV 51 92 ITU G.993.2 (VDSL2) 16 20 IEEE 1149.4 Mixed-Signal Test Bus

7 15

JTC 1/SC 29/WG 11 MPEG

45 68 JTC 1/SC 29 15 17 IEEE 802.3af PoE 7 15

IEEE 1363 Public Key Cryptography

43 52 ITU G.VBR-EV 14 14 ITU H.222.0 MPEG-2/System

7 10

ITU H.264/MPEG-4 AVC

43 86 BroadBand Forum 13 36 IEEE 1647 e-Functional Verification Language

6 10

ETSI-TETRA 40 53 ETSI-GMPRS 13 21 J 161 Audio/Video codec CATV

5 11

IEEE 1394 Firewire 30 46 ETSI-UICC 13 28 ETSI-DTS 4 10JTC 1/SC 25 30 36 ISO TC 23/SC 19 12 14 ETSI-ERM 3 11

ETSI-eCall 2 10

Prepared by Serge RAES



Case study: LTE declared Essential Patents[http://ipr.etsi.org/DynamicReportingResult.aspx, 15/03/2013]

ETSI Projects Standards CompaniesPatentOffices

PatentHolders

PatentFamilies

DeclarationsIPR

Disclosures

9 3714 88 95 8973 5897 609 11348

3GPP 2632 85 95 7639 4636 565 9312

3GPP-EUTRAN 366 13 39 1035 855 49 934

3GPP-Release-10 683 30 53 1520 969 112 1415

3GPP-Release-12 46 2 22 94 75 7 70

3GPP-Release-8 793 28 52 1408 826 85 922

3GPP-Release-9 337 21 52 764 331 73 361

3GPP-SA 541 39 72 1888 1033 217 2477

LTE 96 2 21 50 13 2 89

LTE/EPS Release 9 14 1 8 7 2 1 3


3GPP accounts for 45% of ETSI Members declarations and 60% of STD


LTE declared Essential Patents Holders (>13 SEP)

[http://ipr.etsi.org/DynamicReportingResult.aspx, 15/03/2013]

Interdigital NEC Innovative Sonic Deutsche Telekom

Qualcomm Nortel Networks Philips Sony

LG Electronics France Telecom Nokia Siemens Networks TDF

Samsung Huawei ToshibaGeneral Dynamics Broadband

Nokia NTT DoCoMo Mitsubishi Electric BenQ

Motorola Texas Instruments Coding Technologies IPR Licensing

Siemens Sharp Pantech Infineon

Apple ETRI ASUSTek Computer Airbiquity

BlackBerry HTC Panasonic KPN

Ericsson Alcatel-Lucent BT Group Sun Microsystems

1-10 11-20 21-30 31-40


36 declarants in 2011 < 88 in 2013 < 104 in 2014



SEP licensing practices

Direct licensing 1:N

– N licenses (no reciprocal license required)

Cross-licensing N:N

– ½ x N x (N-1) = ½ x (N2 - N) licenses required

Collective licensing M:N

– Joint License Agreement M:N

– N licenses required

– Patent Pool 1:N

– N licenses required from Patent Pool comprising M Licensors

36 companies ≤ 630; 88 companies ≤ 3828 licenses; 104 companies ≤ 5356 licenses

Orange


Litigation cases by technology area [Table 4.3]http://ec.europa.eu/DocsRoom/documents/4843/attachments/1/translations/en/renditions/pdf

Category Technology area SEP LitigatedSEP

%

1 Tele Telecommunications via public networks 4284 244 5.7

2 LAN LAN/PAN/BAN networks, wired and wireless 236 32 13.6

3 IT Information Technology and Internet 534 23 4.3

4 AV Audio/video, coding and compression, home systems and entertainment, broadcasting

221 32 14.5

5 Secu Security, ID, biometrics, crypto 182 21 11.5

6 Trans Transport, logistics, aerospace, intelligent transport systems

3 0 0.0

7 Energ Energy generation, distribution and storage, fuel cells, power electronics

6 0 0.0

8 Ind Industrial equipment, manufacturing, production 41 2 4.9

9 MTS Measurement, testing, safety standards,language standards

22 1 4.5

Total 5529 355 (6.4)Prepared by Serge RAES



Smartphone Competitor Patent Suits (01/2012)



Smartphone US litigation between competitors 2001-2013Source = Smart Phone Litigation and Standard Essential Patents, Table 1, Kirti Gupta and Mark Snyder, May 2014, with permission

Firm Cases as Plaintiff

Cases as Defendant

Unique patents asserted

Apple 20 27 71Audiovox 1 2Curitel 0 0 0Ericsson 7 0 45Google 1 0HTC 5 15 19Huawei 0 4 0Interdigital 12 3 18Kyocera 1 3 3LG 0 3 0

Firm Cases as Plaintiff

Cases as Defendant

Unique patents asserted

Microsoft 3 11 23Motorola 26 11 62Nokia 19 6 73Pantech 0 1 0BlackBerry 3 7 9HTC (S3) 3 1 10Samsung 6 15 54Sanyo 0 1 0Sony 3 0 15ZTE 0 1 0


Only 111/2746 disputes where SEP/FRAND is cited


9 Standardization and Intellectual Property Impact_SEP_Conflicts_on_Innovation_20141027.pptxPrepared by Serge RAES


Contributions to 3GPP standardization: Detailed results for years 2012-2013

from manufacturers and operators perspective




Orange in 3GPP

This analysis takes into account all industry contributions independently of their status from the following 3GPP working groups in which Orange is involved:

Orange has 31 regular delegates at 3GPP.

Orange leadership in 3GPP

SA4 Codecs Vice-Chair : Stéphane Ragot (OLPS/ COMSERV/ SVQ/ TPS)SA4 Video Codecs Sub-Working Group (SWG) Chair : Gilles Teniou (OLPS/ TV/ DTV/ CVA)SA5 Network Management SWG Vice-chair : Jean-Michel Cornily (OLN/ CNC/ NCS/ SID)

CT4 Vice-chair : Lionel Morand (OLN/ CNC/ NCA/ A2M)CT4 Diameter SWG Chair : Lionel Morand

Orange leadership in 3GPP

SA4 Codecs Vice-Chair : Stéphane Ragot (OLPS/ COMSERV/ SVQ/ TPS)SA4 Video Codecs Sub-Working Group (SWG) Chair : Gilles Teniou (OLPS/ TV/ DTV/ CVA)SA5 Network Management SWG Vice-chair : Jean-Michel Cornily (OLN/ CNC/ NCS/ SID)

CT4 Vice-chair : Lionel Morand (OLN/ CNC/ NCA/ A2M)CT4 Diameter SWG Chair : Lionel Morand

SA1Services/Requirements

SA2Architecture

SA3Security

SA4Codecs

SA5Network Management

CT1MM/CC/SM

CT3Interworking

CT4MAP/GTP/BCH/SS/CAM

ELCT6

Smart Card Application

RAN1Radio Layer 1

RAN2Radio Layer 2 & 3 RRR

RAN3Lub, lur, lu & O&M

RAN4Performance

RAN5Terminal Conformance

Testing

SASystem Aspects

CTCore Network &

Terminals

RANRadio Access Network



Are taken into accountthe contributions fromthe following significantcontributors*:

Operators (29)AT&T

Bouygues Telecom

BT Group

CableLabs

China Mobile

China Telecommunications

China Unicom

Deutsche Telekom

KDDI

KPN

KT Corp.

LG Uplus

NTT Docomo

Orange

Rogers Communications

SFR

SK Telecom

Softbank

Sprint

Swisscom

Telecom Italia

Telefonica

Telenor

TeliaSonera

Telus

T-Mobile

US Cellular

Verizon

Vodafone

Manufacturers (40)Acision UK Ltd

Acme Packet

Alcatel-Lucent

Apple

ATR

Broadcom Corporation

Cisco Systems

Comverse Network Systems

Ericsson Inc.

ETRI

Fraunhofer IIS

Fujitsu

Gemalto

General Dynamics Broadband

Giesecke & Devrient GmbH

Hitachi Ltd.

HTC Corporation

Huawei

Intel

Juniper Networks

LG Electronics Inc.

Microsoft

Mitsubishi

Morpho Cards

Motorola

NEC Corporation

Nokia Siemens Networks

Oberthur

Oracle Corporation

Panasonic Corporation

Qualcomm Incorporated

Research in Motion

Rohde & Schwarz

Samsung

SHARP Corporation

Sony

Technicolor

Texas Instruments

Toshiba

ZTE

* Total of 69 contributors on 394 participants at 3GPP (18%) representing the most representative and active actors in standardisation.

Industry representatives




Manufacturers contributions in 2012

0

1000

2000

3000

4000

5000

6000

7000

8000

3GPP contributions match market positions in the Industry for various business lines: Ericsson is leading contribution (as infrastructure vendor) ahead of Huawei, NSN & ALUQualcomm is leading contribution, as chipset makerGemalto is leading contributions, as SIM card vendor (ahead of Oberthur, Morpho…)Samsung is leading contributions, as device maker Apple contributes in a limited way (#10 contributions)



Manufacturers contributions in 2013 (January to September)

0

1000

2000

3000

4000

5000

6000




Operators contributions in 2012

0

200

400

600

800

1000

1200

1400

1600

1800

2000

NTT DoCoMo is leading operator contributions Orange is ranking #2 followed by two other European players (Deutsche Telekom & Vodafone)Then, Verizon, AT&T are leading American operator contributions



Operators contributions in 2013 (January to September)

0

100

200

300

400

500

600

700

800

900

1000

Compared to 2012 (as to date):Deutsche Telekom has decreased its number of contributions: from rank#3 to rank#6




Companies contributions by working groups in 2012-2013



Contributions and delegates mapping towards working groups, per company

EricssonEricsson HuaweiHuawei

Nokia SiemensNokia Siemens Alcatel LucentAlcatel Lucent

111 delegates in total 106 delegates in total


20

57

34

SA11%

SA29%

SA32% SA4

4%

SA56%

CT113%

CT38%

CT46%

RAN18%

RAN212%

RAN34%

RAN423%

RAN54%

SA14%

SA210%

SA32% SA4

2%

SA55%

CT19%

CT37%

CT48%

RAN110%RAN2

11%

RAN38%

RAN420%

RAN54% 39

18

49

SA12%

SA29%

SA35%

SA514%

CT16%

CT34%CT4

9%

RAN113%

RAN217%

RAN311%

RAN410%

9

16

32

SA13%

SA211%

SA32% SA4

1%

SA58%

CT112%

CT34%CT4

11%

RAN111%

RAN212%

RAN314%

RAN411% 12

27

14




QualcommQualcomm SamsungSamsung

LGLG


48 delegates in total AppleApple 8 delegates in total


SA16%

SA25% SA3

1%

SA416%

CT15%

CT64%

RAN117%

RAN220%

RAN33%

RAN416%

RAN57%

SA11%

SA210%

SA33%

SA48%

CT18%

CT61%

RAN123%

RAN227%

RAN311%

RAN45%

RAN53%

SA11% SA2

17%

CT15%

CT61%

RAN133%

RAN226%

RAN36%

RAN411%

SA440%

RAN140%

RAN420%

4

7

37

7

18

47

5

16

41

5

3



NTT DoCoMo

NTT DoCoMo

OrangeOrange

Deutsche TelekomDeutsche Telekom

VodafoneVodafone




SA15%

SA211%

SA43%

CT120%

CT310%CT4

2%RAN110%

RAN212%

RAN418%

RAN59%

SA17%

SA222%

SA412%

SA57%

CT110%

CT316%

CT49%

CT63%

RAN24%

RAN43%

SA18%

SA211%

SA32%

SA46%

SA56%

CT121%

CT322%

CT48%

RAN214%

SA113%

SA221%

SA39%

SA44%

CT117%

CT62%

RAN14%

RAN212%

RAN35%

RAN412%

15

14

29

9

14

8

9

8

5

5

86




VerizonVerizon AT&TAT&T

China TelecomChina Telecom KDDIKDDI



Contributions and delegates mapping towards working groups, per company SA1

3%

SA219%

SA35%

SA420%

CT121%

CT33%

CT415%

RAN28%

RAN52%

SA110%

SA223%

SA33%

SA44%CT1

10%

CT310%CT4

6%

CT63%

RAN14%

RAN26%

RAN37%

RAN414%

SA18%

SA229%

CT48%

SA121%

SA215%

CT15%

RAN117%

RAN27%

RAN421%

RAN514%

2

3

4

4

712

4

68

1

68



Additional open questions for further study

1. Study of SEP litigation to identify :

– Parties, nature of dispute, Juge decision

– More Hold-up or Reverse hold-up ?

2. Does SEP licensing require more regulation ?

3. Does non-SEP licensing require more regulation ?

4. What are the circumstances that exacerbate litigation withSEP ?

5. Impact analysis (prediction) of potential changes to SDO IPR Policy :

Are the preventive/curative remedies better or worse than the potential disease and for whom ?

A sound diagnosis is required in order to avoidunintentional impact on innovation in Europe



Thank You

Dr. Ir. Serge RAESIntellectual Property & Standardization Senior Manager

38-40 rue du Général LeclercF-92794 Issy Les Moulineaux CEDEX 9

Tel: +33 1 4529 [email protected]

Documents

Impact of SEP conflictson ICT innovation in Europe - ECis.jrc.ec.europa.eu/pages/ISG/EURIPIDIS/documents/SergeRaes_000.pdf · Impact of SEP conflictson ICT innovation in Europe