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Patent war talks to be hosted by UN agency to protect innovation | Patent war talks to be hosted by UN agency to protect innovation |
(4 months later) | |
A rash of patent lawsuits has prompted the UN to call smartphone makers and others mobile industry bodies together. | A rash of patent lawsuits has prompted the UN to call smartphone makers and others mobile industry bodies together. |
It said the parties needed to address the "innovation-stifling use of intellectual property" which had led to several devices being banned from sale. | It said the parties needed to address the "innovation-stifling use of intellectual property" which had led to several devices being banned from sale. |
It said innovations deemed essential to industry standards, such as 3G or Jpeg photos, would be the meeting's focus. | It said innovations deemed essential to industry standards, such as 3G or Jpeg photos, would be the meeting's focus. |
It noted that if just one patent holder demanded unreasonable compensation the cost of a device could "skyrocket". | It noted that if just one patent holder demanded unreasonable compensation the cost of a device could "skyrocket". |
Microsoft and Apple are among firms that have called on others not to enforce sales bans on the basis of such standards-essential patents. | Microsoft and Apple are among firms that have called on others not to enforce sales bans on the basis of such standards-essential patents. |
However, lawyers have noted that doing so would deprive other companies of way to counter-attacking other types of patent lawsuits pursued by the two companies. | However, lawyers have noted that doing so would deprive other companies of way to counter-attacking other types of patent lawsuits pursued by the two companies. |
Fighting over Frand | Fighting over Frand |
Companies are supposed to license standards-essential patents on fair, reasonable and non-discriminatory terms (Frand). | Companies are supposed to license standards-essential patents on fair, reasonable and non-discriminatory terms (Frand). |
That means that the patent-holder cannot discriminate who gets to use its invention and that the cost cannot be excessive. | That means that the patent-holder cannot discriminate who gets to use its invention and that the cost cannot be excessive. |
However, the International Telecommunication Union - the UN agency hosting the event - said that the parties involved differed over what they believed to be a reasonable charge for Frand-type patents, and whether they should be allowed to seek legal injunctions to block shipments if they failed to agree terms. | However, the International Telecommunication Union - the UN agency hosting the event - said that the parties involved differed over what they believed to be a reasonable charge for Frand-type patents, and whether they should be allowed to seek legal injunctions to block shipments if they failed to agree terms. |
"We are seeing an unwelcome trend in today's marketplace to use standards-essential patents to block markets," said the ITU secretary general Dr Hamadoun Toure. | |
"There needs to be an urgent review of this situation: patents are meant to encourage innovation, not stifle it." | "There needs to be an urgent review of this situation: patents are meant to encourage innovation, not stifle it." |
EU probes | EU probes |
Motorola Mobility - now owned by Google - managed to impose a brief sales ban of iPhone and iPads in Germany last year after Apple refused to pay it a licence fee. The dispute centred on a patent deemed crucial to the GPRS data transmission standard used by GSM cellular networks . | Motorola Mobility - now owned by Google - managed to impose a brief sales ban of iPhone and iPads in Germany last year after Apple refused to pay it a licence fee. The dispute centred on a patent deemed crucial to the GPRS data transmission standard used by GSM cellular networks . |
Motorola has also attempted to ban Xbox games consoles and Windows 7 software in Germany after Microsoft refused to pay it fees for a technology necessary to offer H.264 video coding and playback. | Motorola has also attempted to ban Xbox games consoles and Windows 7 software in Germany after Microsoft refused to pay it fees for a technology necessary to offer H.264 video coding and playback. |
Samsung has also attempted to use its 3G patents to bar Apple from selling products in Europe, Japan and the US. | Samsung has also attempted to use its 3G patents to bar Apple from selling products in Europe, Japan and the US. |
The efforts have led the EU to launch official investigations into both Motorola and Samsung's behaviour. | The efforts have led the EU to launch official investigations into both Motorola and Samsung's behaviour. |
'No simple answer' | 'No simple answer' |
However, industry watchers note that Apple has used lawsuits to ban Samsung products in both the US and Australia and attempted to restrict sales of other companies' devices powered by Android. | However, industry watchers note that Apple has used lawsuits to ban Samsung products in both the US and Australia and attempted to restrict sales of other companies' devices powered by Android. |
Microsoft has also demanded and secured license fees from manufacturers making smartphones using Google's operating system. | Microsoft has also demanded and secured license fees from manufacturers making smartphones using Google's operating system. |
Illya Kazi, a member of the UK's Chartered Institute of Patent Attorneys said competing interests would make it hard to resolve the matter. | Illya Kazi, a member of the UK's Chartered Institute of Patent Attorneys said competing interests would make it hard to resolve the matter. |
"The situation is complex and it's very easy for someone to complain something is not fair because it is adverse to their position," he told the BBC. | "The situation is complex and it's very easy for someone to complain something is not fair because it is adverse to their position," he told the BBC. |
"I don't think there's a simple answer. High-level talks can't be a bad thing, but I would be surprised if they can come up with an agreed implementable conclusion." | "I don't think there's a simple answer. High-level talks can't be a bad thing, but I would be surprised if they can come up with an agreed implementable conclusion." |
The talks are scheduled to take place at the ITU's headquarters in Geneva on 10 October. | The talks are scheduled to take place at the ITU's headquarters in Geneva on 10 October. |
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