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Frand friend or foe

Panel presentation for IBC Legal conference 2011

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Frand friend or foe

  1. 1. FRAND : Friend or Foe Dave McAllister, Director Open Source and Standards© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential. 1
  2. 2. Success?   FRAND is successful in commercial endeavors   For the receiving companies   For levels of protection in creating commercially applicable standards   For reducing concerns on other open endeavors, e.g. Open Source   But may be less successful   For the granting companies   For market innovation© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential. 2
  3. 3. Should we de ne FRAND   For a commercial organization, it would be desirable to have a de nition   Legally clear and tested   With reciprocal impact   For standards development, a de nition is verging on mandatory   Many different interpretations on scope and coverage   Tit-for-tat (reciprocity) in any FRAND de nition would be highly desirable commercially© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential. 3
  4. 4. Penalties in commercial behavior   Violating a FRAND agreement   Can cause patent engagements   Leading to product issues   Loss of revenue   Loss of reputation   Loss of trust is is of nontrivial impact. But honestly, NPEs don’t care, so a sufficient exclusion /withdrawal would be useful.© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential. 4
  5. 5. Regulatory or Commercial?   Simply put: FRAND is a regulatory tool to aid in long term adoption and stability, however, it is/must be powered by commercial acceptance. However, FRAND must be limited in scope within standards developing organizations, since patent search and review can quickly overwhelm commercial organizations unless directed.© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential. 5
  6. 6. © 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential.

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