1. How will the IEEE and Via Licensing work together?
IEEE and Via have formed an agreement to foster the development of patent pools based on IEEE standards through a streamlined approach to pool formation and license availability and to ensure that IEEE standards are more broadly adopted.
2. What is the relationship between Via Licensing and IEEE?
Via Licensing and IEEE-SA have entered into a Development Agreement that combines Via Licensing’s formidable pool administration capabilities with the IEEE’s strengths in managing complex processes, bringing together diverse communities to reach consensus, and publishing standards that form the backbone of many of the world’s premiere power, electronic, communications, computer and software products.
3. How does the IEEE Patent Policy align with this new relationship?
IEEE’s enhanced patent policy, which was the subject of a favorable Department of Justice business review letter, has garnered support from many leading companies who may participate in patent pools based on IEEE standards.
4. Why was Via Licensing selected?
This initiative stems from IEEE-SA’s efforts to evaluate various ways it can help to support the rapid adoption and implementation of IEEE standards. IEEE chose Via to develop a pilot based on its deep experience and solid track record of pool formation and management. Via Licensing, an independently run subsidiary of Dolby Laboratories, is an organization focused solely on the development, licensing, and administration of world-class joint licensing programs. Via Licensing’s global operations, and client base of world technology leaders, is a recognized leader within the industry.
5. What roles will each organization have and how will they work to the benefit of licensors and licensees?
Each organization will bring its core expertise to the collaboration. In the case of IEEE, in addition to the work associated with creating the standards themselves, additional focus will be put on building awareness within the working groups and the broader industry. Via Licensing will work with IEEE in the early fostering phase to identify candidate standards for pool commercialization, to promote the benefits of patent pools to potential licensors and to solicit feedback on methods for streamlining the patent pool formation process. Via will work independently to organize licensors, to facilitate pool formation and ultimately to administer the licensing programs.
6. Will IEEE’s well-noted neutrality in standards development be impacted by Via’s efforts to ensure the commercial success of the patent pools it forms?
IEEE has always been interested in the success of its standards and the working groups that
develop them. The relationship with Via Licensing has been designed such that IEEE is only
involved in the pre-commercial phase. IEEE will not be involved in any commercial issues (e.g., determination of essential patents, or licensing terms). The role of IEEE will be focused on fostering the patent pool process through education and promotion. All patent licensing administration functions will be performed by Via Licensing independent of IEEE.
7. Why is pooling particularly appealing when it comes to standards?
Many of today’s products are a complex collection of technologies and IP rights. Patent pools provide cost-effective access to patents deemed essential to implementing the standardized technologies in those products. By providing IP at market-appropriate royalty rates, licensees are assured of a “level playing field” (all licensees pay the same rate for field of use) and cost effective access through a single license agreement to all of the IP in the pool. Absent a pool, both licensees and licensors may need to negotiate and manage individual licenses which can be cumbersome, time-consuming, and prove far costlier to both parties than the single-agreement model provided by a patent pool.
8. If an IP holder decides to join a pool, does that mean they no longer control their patents once they become part of the pool?
No. Participation in a pool does not impact the rights of the IP holder in any way; they are still free to license their patents outside the pool and make unilateral decisions regarding enforcement of their patents.
9. Does streamlining the pool formation process imply that all standards that result in a pool license will all have the same terms and conditions?
No. To the extent reasonable, having common terms and conditions across various pool licenses will increase efficiency and minimize certain time-to-market issues; however, each technology or pool will have unique characteristics which would make a “cookie cutter” approach to licensing impractical and inappropriate. While licensors of the pool decide on the terms of pools, Via Licensing’s experience in pool development and administration will be invaluable in helping licensors strike the right balance to ensure market-appropriate terms. While IEEE is not involved in any way in negotiations with companies, the experience of IEEE in developing robust processes, achieving balance, and supporting reasonable and non-discriminatory outcomes will support the development of streamlining guidelines that Via will apply.
10. Will IEEE and Via focus solely on the consumer electronics market or are there broader targets in mind?
Specific targets have not been set, and while it is true that there are several successful pools for consumer electronics technologies, the principles and benefits of patent pools are applicable to many other market segments. Via Licensing and IEEE are committed to identifying a broad spectrum of technologies that are standardized by IEEE and could be patent pool candidates.
11. What will the role of IEEE and Via be in determining patent essentiality?
One of the key metrics associated with standards-based patent pools is that the pool is strictly limited to patents that have been found to be “technically essential” to the practice of the standard. Neither organization takes a role in determining essentiality. Via Licensing facilitates the process, but patent essentiality is performed solely by a neutral third-party patent expert.
12. Will standards setting activities and pool formation activities now overlap?
No, the technical work needed to form standards and the business process associated with licensing, are very distinct activities. However, both Via Licensing and IEEE feel strongly that building awareness about the benefits of patent pooling with key stakeholders will help accelerate discussions that could lead to the formation of patent pools.
13. In the future, will all of the patents with claims that read on technologies standardized by IEEE be required to be licensed in the form of a patent pool?
No. The decision as to whether or not a patent pool is the most desirable licensing method always rests with the IP holders.
14. How will this announcement affect standards that are still in development?
Any potential pool opportunity assessment or development activity carried out by Via is independent of the standards setting activities managed by IEEE and IEEE working groups. The intent of the collaboration is to help shorten the time between a standard being ratified and a license for its patents becoming available to then facilitate its adoption and use.
15. Will there be additional fees or costs assessed to companies that are working with IEEE to develop a standard if the companies also decide to participate in a pool?
No. The standards development process remains separate from the formation of a patent pool. Any fees associated with forming a patent pool will be determined between Via Licensing and the potential essential patent owners.
