On February 9, new IEEE bylaws with radical changes to the patent policy were adopted by the IEEE board. I commented on the alarming content of that policy in an earlier post.
If the policy is allowed to stay this way, I fear that IEEE will over time become irrelevant as a telecoms standards setting organization due to its sudden anti-innovation stance.
A key clause of the policy describes factors for determining a reasonable rate, and the final wording "should include, but need not be limited to, consideration of" was used. But if both "new" and "traditional" factors are to be considered, I think there can be confusion, if not contradiction. For example, the new policy essentially says that the value contributed to the chipset, or perhaps even only a part of it, should be considered. So how can you also consider the value contributed to the end-product, which is something entirely different. And for that matter, are you supposed to compare or combine these valuations, and if so, how?
If the policy is allowed to stay this way, I fear that IEEE will over time become irrelevant as a telecoms standards setting organization due to its sudden anti-innovation stance.
A key clause of the policy describes factors for determining a reasonable rate, and the final wording "should include, but need not be limited to, consideration of" was used. But if both "new" and "traditional" factors are to be considered, I think there can be confusion, if not contradiction. For example, the new policy essentially says that the value contributed to the chipset, or perhaps even only a part of it, should be considered. So how can you also consider the value contributed to the end-product, which is something entirely different. And for that matter, are you supposed to compare or combine these valuations, and if so, how?
In its recently issued Business Review Letter, the US Department of Justice (DoJ) appeared to base its decision to clear the content of the policy on a broad and theoretical reading of that very clause; "Significantly, the Update makes clear that the determination of Reasonable Rates 'need not be limited to' these factors. The Update, then, does not mandate any specific royalty calculation methodology or specific royalty rates.";
I for one don't agree with the US DoJ. I rather predict that "should include, but need not be limited to" followed by an exhaustive list of factors, will - in practice - be at the exclusion of other factors that cause confusion or contradiction, as mentioned above. Which is why I reviewed the clause from that viewpoint.
Unfortunately the DoJ clearance may ultimately be to the detriment of US consumers, as the innovation content of WiFi and other standards is likely to be diluted. In fact, it may already have begun, considering e.g. Qualcomm's recent statement to not abide by the new policy.
For IEEE to stay relevant, it needs to be inclusive with regards to the world's top innovators and innovations. It should be focusing on making the world's most technically advanced and future-proof standards. It can't be wasting its time designing around technology that would ultimately have been beneficial for consumers.
For IEEE to stay relevant, it needs to be inclusive with regards to the world's top innovators and innovations. It should be focusing on making the world's most technically advanced and future-proof standards. It can't be wasting its time designing around technology that would ultimately have been beneficial for consumers.