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RE: [PP-DIALOG] Definition of Reasonable Rates



Don,
 
Thanks for starting this discussion and your work as chair of the PatCom.
 
I have a question that really should be asked in several ways to make sure you, or others, understand the information that I need to make good decisions for TI and IEEE.
 
I really need to understand the reason for the Patent Committee of the IEEE considering this change to what appears to be a generally accepted rule of law.
 
Why is this being proposed at PatCom of IEEE?
 
What underlying problem is PatCom trying to solve?
 
How will PatCom adopting this statement affect patent licensing?  What is the intended effect of PatCom adopting this statement?
 
I know that answering these questions will take some effort fully to describe the answers, but the answers are extremely important;  they could affect millions of dollars in patent licensing and hundreds of companies.
 
Everyone, I encourage anyone, not just Don, to respond or supplement any responses provided to these questions.
 
Don, again, thank you for your time and efforts.
 

Regards,

 

Larry Bassuk

Senior Patent Counsel                            Tele: 972-917-5458

Intellectual Property Rights                     Fax:  972-917-4418

Standards Organizations                        Cell:  214-458-5975

Texas Instruments Incorporated

 


From: Don Wright [mailto:don@LEXMARK.COM]
Sent: Friday, January 20, 2006 4:01 PM
To: PP-DIALOG@LISTSERV.IEEE.ORG
Subject: [PP-DIALOG] Definition of Reasonable Rates


OK... the holiday season is over.  Time to throw some meat to the wolves...

One of the issues the IEEE is trying to address is a definition of "reasonable rates, terms and conditions"  Other than the issue of the interpretation of "arms-length" from a cultural perspective, here's where I think we left it:


Reasonable rates, terms and conditions shall mean rates, terms and conditions that a willing licensor and a willing licensee would agree to in an arms-length negotiation before the adoption of the standard, taking into consideration any alternative technologies and any alternative implementation methods which eliminate the essentiality of the patent claim(s).

If we could, let's only consider two aspects of this:

1) Does the IEEE need to define this?
       - Is this already defined in some case law?
       - Should this be defined identically for all US SDOs, i.e., should it come ex cathedra from ANSI?  If so, what about the rest of the world?
       - Is letting each judge in each court in each case define it really a workable solution, i.e. is it OK not to be able to predict the answer for each case?

2) If the IEEE does define it, what should the definition be?


Please try to keep the argument at a level even us non-lawyers can understand (not too much latin ;>))  Any pointers to cases should be to something on the web (or attached) so we can all read it.

***************************************************************************
 Don Wright                      don@lexmark.com
                                 f.wright@ieee.org / f.wright@computer.org
 Director of Standards
 Lexmark International           Past Chair, IEEE SA Standards Board
 740 New Circle Rd               Chair, Patent Committee IEEE SASB
 Lexington, Ky 40550             Member-at-large, IEEE CS SAB
 859-825-4808 (phone)            Member, IEEE-ISTO Board of Directors
 603-963-8352 (fax)              Member, W3C Advisory Committee
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