The IPR Strategy recognizes explicitly that IPRs create a host of ways for innovators to extract value and reward, and that each is valid. It recognizes that businesses should not be hampered in finding new models to value their IPR. Most strikingly for the standards world, the Communication expressly recognizes in the context of standardization that licensing is an important part of it and that “many European companies nowadays generate a large part of their revenue through licensing of their IP portfolios (page 5)”. The IPR strategy only refers to standardization once, at page 5, and it is interesting that the text looks only at the importance of IP licensing regimes (and by implication the success of the current FRAND patent policy underlying the global standards world), not only in fostering take up for standards, but in incentivizing repeat contributions to allow the standards to evolve. However, as relates the text’s reference to ‘diligent management of IPR’, the management of IPR should be based on commercial decisions, not state involvement (as occurs in copyright). The GSM patent pool model is not necessarily capable of replication. The success of UMTS, also referred to in the Communication is based on an open licensing model. It is up to the owners of IPR to decide how best to manage their IPR, and if they are considering joining a standards organizations that standards organization’s IPR rules are clear and balanced so that potential members can make decisions about participation.
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