[governance] The US Department of Justice and USPTO call for compulsory licenses on thousands of "standards-essential" patents

[Daniel Kalchev]

On 27.02.13 08:24, Suresh Ramasubramanian wrote:
> I agree with Lee's analysis. Do note that the monopoly is for a particular device or class of devices, at the most - with the market still widely open to a range of competing devices.

While I agree in principle with these opinions, my take on the subject 
is a bit different.

First, I fully support this initiative, because I believe this is the 
right thing to do. Let's hope it will be implemented across the EU too 
and around the world.

The current system of 'standards essential patents' is absurd. A bunch 
of vendors come together and produce an "standard" that is more or less 
mandatory for everyone. Yet, at the same time, those parties retain 
patent rights over the technologies they "contributed" to the standard. 
In essence, they create a new requirement for everyone (the standard) 
that when you use, and you don't have much choice not to use it, 
requires you to pay them royalties. Worst of all, they are who sets the 
royalties and you are at their mercy. (example) Samsung doesn't like 
Apple, so they ask them outrageous amounts for what they charge someone 
pennies. (end of example). This is an well known economic phenomena: 
cartel. Cartels are illegal in many jurisdictions, yet for some strange 
reason are allowed to exist with standards.

My preferred solution to this situation would be to require any and all 
technologies, that are included as part of a standard be put in the 
public domain (or equivalent). If you don't want your technology 
becoming public domain, it has no place in standards. You still have the 
advantage to have already implemented it (let's hope) and know it 
intimately.

The solution DOJ and USPTO came to is a milder version, which will still 
work.

Daniel

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