As technology ecosystems evolve to become increasingly connected and complex, the IP valuation models supporting the standards that make these relationships possible must also evolve. In this session, we will explain the most recent economic models and case law related to the Internet of Things (IoT) and Standard Essential Patents (SEPs). Our discussion will include the current debates related to the valuation of IoT and SEPs, such as "license for all" versus "license to all."

1. Dennis J. Duncan
Managing Director, Essentiality Check
September 2022

2. Cellular-Vehcile-2-Everything (C-V2X)
If widely deployed C-V2X can reduce traffic fatalities by providing greater range than is currently provided by
traditional autonomous vehicle sensors (Camera, LiDAR (Light Detection and Ranging), Radar, GNSS (Global
Navigation System Satellite), and CAN (Controller Area Network).
1.35 million people die in road accidents worldwide every year, equivalent to 3700 deaths per day.
C-V2X evolved from ad hoc network proximity-
based services (ProSe) scenarios first standardized
in Release 12 (LTE) and initially referred at as
Device-to-Device (D2D) communications. D-2-D
provides proximity-based services (ProSe) (e.g.,
inter/intra vehicle communications) to enable
enhanced intelligence Traffic System (ITS). In
Release 14 in (LTE-Advanced), new features were
added, and D-2-D was renamed the “PC5 interface”
or alternatively referred to as “slidelink (SL)
communications.” C-V2X provided vehicle access to
4G LTE and 5G NR core networks in two high-level
configurations: Distributed Scheduling
(Configuration No. 1) and eNB/gNB Scheduling
(Configuration No. 2).

3. Ericssonv.D-LinkSys.,Inc.,773F.3d1201,1232(Fed.Cir.2014) EntireMarketValueRule(“EMVR”).
TCL Communications Technologies Holding v. Ericsson, SACV 14-341 NS(DFMx) (US Dist. CDCA) December
21, 2017
TCL’s Top-Down Analysis:
153,000 (2G/3G/4G) @ 9/2015
Smallestsalablepatentpricingunit(SSPPU)“callsforsettingtherevenuebaseforreasonableroyaltypatentinfringementdamagesat
thesmallestpossibleproductlevelthatstillreflectsthepatentedinvention.Forexample,ifpatentedfeatureAissoldintwoproducts,
ABCDEandABC,thenproductABC(notincludingfeaturesDandE)wouldlikelyformtheSSPPU(itisarareinstancethatproductA
wouldbesoldonastandalonebasis).
- Anne Layne-Farrar, Charles River Associates, les Nouvelles November 2017
Case Law

4. CEN-CENELEC (October 2017)
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International Approaches
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5. Chinese Approach
February 2016 “Guidelines on Anti-Monopoly Enforcement against Abuse of Intellectual Property Rights,” (7Th
Draft) State Administration of Industry and Commerce (SAIC)
o Article § 28(1) - Required disclosure of detailed patent information in IPR declaration statements while
participating in standards bodies (prior to freezing the standard) else waive rights to claim patents as SEPs in
subsequent licensing assertions.
o Article § 28(7) - Authorized the State Council to determine if a pool affects market power by examining if the
pool “. . . contain[ed] alternative technology, contained unimportant or invalid patents . . .”
October 2020 State Administration for Market Regulation (SAMR) published guidelines reflecting a significant
softening by Chinese regulators with respect to patent pools, signaling an endorsement with caveats: “[P]atent
pools can generally save costs, increase efficiencies and facilitate competition . . Article § 28(7)
Forthcoming 2021 Draft superseding December 2013 Interim Provisions on the Administration of National
Standards Involving Patents by SAIC and SIP0 (Now CNIPA). – resolving Article § 28(1) ?

6. q Hantei” (Advisory Opinion) for Essentiality Check
q JPO Guide to Licensing Negotiations Involving Standard Essential Patents
Japanese Approach

7. European Approach
q November 2017 -EU Commission COM(2017) 712 final, 29
q July 5, 2018 - Commission establishes ”Group of Experts” on Licensing and Valuation of Standard
Essential Patents
q 2019 – 2021 EU Joint Research Centre Studies:
1. The Relationship Between Open-Source Software and Standard Setting (2019);
2. Making the Rules: The Governance of Standard Development Organizations and their Policies on
Intellectual Property Rights (2019)
3. Landscape study of potentially essential patents disclosed to ETSI (2020);
4. Pilot study for essentiality assessment of Standard Essential Patents (2020).
q December 2020 to present – DG GROW Webinars with SEP stakeholders
q January 24, 2021 Group of experts on licensing and valuation of Standard Essential Patents (“SEPs Expert
Group”)- Group of Experts on Licensing and Valuation of Standard Essential Patents ‘SEPs Expert Group

8. United States Approach
July 2020 DOJ Avanci BRL
Refers back to 2002 3G Patent Platform Partnership BRL (Basic framework and protections afforded)
September 2020 DOJ IEEE BRL
• Injunctive Relief
• SSPPU
• Negative LOAs
July 2021 Executive Order on Promoting Competition in the American Economy
”(iii) providing support for the continued development and adoption of 5G Open Radio Access Network
(O-RAN) protocols and software, continuing to attend meetings of voluntary and consensus-based
standards development organizations, so as to promote or encourage a fair and representative standard-
setting process, and undertaking any other measures that might promote increased openness, innovation,
and competition in the markets for 5G equipment;”

9. Thank You
A & Q