Yliopiston etusivulle Suomeksi På svenska In English Helsingin yliopisto

Standardization and Patent Licensing In the European Union

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dc.contributor Helsingin yliopisto, oikeustieteellinen tiedekunta fi
dc.contributor Helsingfors universitet, juridiska fakulteten sv
dc.contributor University of Helsinki, Faculty of Law en
dc.contributor IPR University Center en
dc.contributor.author Zhang, Liguo fi
dc.date.accessioned 2012-11-26T13:02:50Z
dc.date.available 2012-12-04 fi
dc.date.available 2012-11-26T13:02:50Z
dc.date.issued 2012-12-14 fi
dc.identifier.uri URN:ISBN:978-952-67874-0-4 fi
dc.identifier.uri http://hdl.handle.net/10138/37636
dc.description.abstract The interaction between IPRs and standards has lately raised growing concerns in the information and communication technology (ICT) industry. These highly controversial issues include industry standards embracing proprietary technologies, excessive royalties for the use of proprietary technologies, and the refusal to grant licenses for the use of proprietary technologies. This study examines the patent licensing practice in the ICT industry, the EU’s regulation on intellectual property licensing and standardization, aims to find out how best to balance standardization and access to essential patents. The study applies entitlement theory to examine the two traditional approaches to facilitating exploitation of patented technology. The market approach that suggests transaction can distribute technological resource to the one that value it most may not be effective because of the poor quality of patents in the industry and the high transaction costs resulting from the high fragmentation of technology and the use of patent for strategy purpose. The intervention approach that suggests applying compulsory license or rules of abuse of patent against patent holders may ignores right holder’s subjective valuation of rights and disrupt right holder’s plan to exploit the right based on that valuation, therefore the application of this approach is limited to only exceptional circumstances. Given that, the study suggests that a cooperative scheme that facilitates licensing of industry wide generally used technology, which mixes the market and intervention approaches, may be effective. Firstly, global patent explosion, the division of technology creation from technology implementation, the convergence of complex technologies, and highly standard-dependent in the industry lead to the problems. Industry wide cooperation is needed in dealing with these common problems. Secondly, standards and patents are not in contradiction inherently. Patent holders may favor standardization as a way to share its innovation with those who could commercialize and use the technology, and as an opportunity to reap the fruits of their R&D investment. Indeed both standards and patents serve a same purpose of promoting innovation. Therefore the cooperation may be desirable. A cooperative scheme may not only manage and share existing resources but also engage in producing those resources and encourage the creation of new resources in the future. Nonetheless this study finds that the collective action problems such as free riding, prisoner dilemma, which usually leads to non-corporation, are main obstacle for creating a cooperative scheme. To overcome these problems, standard setting and selection process can be improved in order to develop such a cooperative scheme. Moreover, fair, reasonable and non-discriminatory licensing conditions established in intellectual property rules of standard-setting organizations or in competition rules could be a flexible mean in creating an optimal arrangement to balance encouragement of individuals to contribute to standardization and encouragement of exploitation of patented technology. en
dc.description.abstract Patent system is designed to stimulate investment in R&D and invention and to stimulate public disclosure of technological information and further stimulate commercial exploitation of technology by granting paten owners exclusive rights over his invention. Industry standards are common language of industry which is generally used by each member of an industry. A patent grants an individual the right to exploit a piece of technology exclusively, while a standard is intended to identify a common pool of technology to be used by everyone. There is an obvious tension between the private character of patents and the public nature of standards. Because standards define design or performance characteristics that products or services must have, they inevitably overlap some claims of patents. When these patents are essential to a standard, it is unlikely for anyone to bypass them in implementing a standard. In the wireless technology industry, on one hand, the technologies have been standardized to secure the seamless roaming worldwide, on the other hand, there are a larger number patents in the industry held by various companies. As a result, since 2001, almost all of the market players have been involved in patent infringement suits. These patent battles indicate the high transaction cost for acquiring necessary patents, which may impede the commercialization of technology and further innovation. This study examines the patent licensing practice in the ICT industry, the EU’s regulation on intellectual property licensing and standardization, aims to find out how best to balance standardization and access to essential patents. Traditionally the market approach suggests transaction can distribute technology to the one that value it most may not be effective. But the poor quality of patents and the high transaction costs may make the market approach inefficient. The intervention approach suggests applying compulsory license or rules of abuse of patent to force patent holders to share their technology with others. But this approach may disrupt right holder’s interests in exploiting its own property, therefore stifling the incentive to innovation. Given that, the study suggests that a cooperative scheme that facilitates licensing of industry wide generally used technology, which mixes the market and intervention approaches, may be effective. Firstly, global patent explosion, the division of technology creation from technology implementation, the convergence of complex technologies, and highly standard-dependent in the industry lead to the problems. Therefore industry wide cooperation is needed in dealing with these common problems. Secondly, standards and patents are not in contradiction inherently. Patent holders may favor standardization as a way to share its innovation with those who could commercialize and use the technology, and as an opportunity to reap the fruits of their R&D investment. Indeed both standards and patents serve a same purpose of promoting innovation. Therefore the cooperation may be desirable. A cooperative scheme may not only manage and share existing resources but also engage in producing those resources and encourage the creation of new resources in the future. Nonetheless this study finds that the collective action problems such as free riding, prisoner dilemma, which usually leads to non-corporation, are main obstacle for creating a cooperative scheme. To overcome these problems, standard setting and selection process can be improved in order to develop such a cooperative scheme. Moreover, fair, reasonable and non-discriminatory licensing conditions created in intellectual property rules of standard-setting organizations or in competition law could be a flexible mean in creating an optimal arrangement to balance encouragement of individuals to contribute to standardization and encouragement of exploitation of patented technology. fi
dc.language.iso en fi
dc.publisher IPR University Center fi
dc.relation.ispartof Publications of IPR University Center 10 fi
dc.relation.ispartof URN:ISSN:1796-8194 fi
dc.rights Julkaisu on tekijänoikeussäännösten alainen. Teosta voi lukea ja tulostaa henkilökohtaista käyttöä varten. Käyttö kaupallisiin tarkoituksiin on kielletty. fi
dc.rights This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited. en
dc.rights Publikationen är skyddad av upphovsrätten. Den får läsas och skrivas ut för personligt bruk. Användning i kommersiellt syfte är förbjuden. sv
dc.subject law fi
dc.title Standardization and Patent Licensing In the European Union en
dc.type.ontasot Väitöskirja (monografia) fi
dc.type.ontasot Doctoral dissertation (monograph) en
dc.type.ontasot Doktorsavhandling (monografi) sv
dc.ths Bruun, Niklas fi
dc.opn Petrusson, Ulf fi
dc.type.dcmitype Text fi

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