[Ecommerce] Standards-setting body wins DoJ go-ahead for patent pool

[Manon Ress]

Standards-setting body wins DoJ go-ahead

http://www.managingip.com/default.asp?
page=9&PubID=198&SID=661752&ISS=22812&LS=EMS111754

Managing Intellectual Property
The US Department of Justice has pledged not to oppose a proposal by
standard-setting organization VITA to require its members to disclose
patents that are essential to implement a new standard in the
critical embedded computing industry.

VITA also wants its members to declare the most restrictive licensing
terms they require before they will license their patents.

In a patent pool, such as that proposed by VITA, two or more rival
companies grant licences to use their respective patents to each
other or to third parties.

Standards-setting organizations say that patent pools can benefit
patent owners and licensees by helping to reduce or avoid expensive
infringement litigation. But antitrust regulators say that patent
pools can adversely affect competition by potentially increasing
prices or reducing the incentive to innovate.

The US antitrust watchdog has the right to challenge business
practices that may be deemed anti-competitive. But standards-setting
organizations can ask Justice Department officials to review whether
their proposals breach competition rules.

In June, VITA asked officials from the Antitrust Division for a
business review letter that sets out the Department's view on the
organization's patent policy, which will apply to owners of essential
patents who participate in its standard-setting activities.

VITA says it made "slight changes" to its proposals following
meetings with regulators. The Department of Justice issued its
business review letter on October 30.

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Manon Anne Ress
manon.ress@cptech.org,
www.cptech.org

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