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FRAND : Friend or Foe
        Dave McAllister, Director Open Source and Standards




© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential.   1
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
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
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
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
© 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential.

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Frand friend or foe

  • 1. FRAND : Friend or Foe Dave McAllister, Director Open Source and Standards © 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential. 1
  • 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. 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. 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. 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. © 2011 Adobe Systems Incorporated. All Rights Reserved. Adobe Con dential.