Re: [PP-DIALOG] Definition of Reasonable Rates
Hi, Don,
1. Does the IEEE need to define "reasonable rates, terms and conditions"?
We support the effort in the IEEE to define reasonable rates, terms and
conditions for intellectual property (IP) included in standards based on the
ex ante value of the IP. Analyzing RAND in the context of the alternatives
(e.g. number of alternatives, merits of alternatives and costs of
alternatives) that were available at the time the IP was selected for
inclusion in a standard leads to a result that more accurately reflects the
true value of the IP. After IP is incorporated in a standard and
implemented in products, the IP value is artificially inflated due to the
costs and incompatibility risks associated with removing the IP from
products.
A definition such as the one you suggest is needed to complement a voluntary
ex ante disclosure policy in which some IP may still be offered under
unspecified RAND terms. This definition would reduce the vagueness and
unpredictability of unspecified RAND terms, because terms and conditions
specified for alternatives would frame the "reasonable" component of RAND.
2. If the IEEE does define it, what should the definition be?
Your definition is very good. We are concerned that since the language does
not explicitly state that the costs of the alternatives can be considered,
some might interpret the language in a way that would allow consideration of
the merits of the alternatives, but not the costs. We suggest that the
definition be tweaked to explicitly state that considerations include
without limitation the number/extent of alternatives, the merits of those
alternatives and the rates, terms and conditions of those alternatives.
Alternatively, and/or in addition to, the guidelines should at a minimum
explain that costs (e.g. the rates, terms and conditions) of alternatives
can be considered.
Thank you. -- Helene
Helene Plotka Workman email: plotka@apple.com
Senior Patent Counsel, Apple Computer phone: (408) 974-5081
1 Infinite Loop, M/S: 3-PAT
Cupertino, CA 95014