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FRAND : Friend or Foe Dave McAllister, Director Open Source and Standards
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Success?
FRAND is successful in commercial endeavors
For the receiving companies For levels of protection in creating commercially applicable standards For reducing concerns on other open endeavors, e.g. Open Source
But may be less successful For the granting companies For market innovation
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Should we de!ne FRAND
For a commercial organization, it would be desirable to have a de!nition
Legally clear and tested With reciprocal impact
For standards development, a de!nition is verging on mandatory Many different interpretations on scope and coverage
Tit-for-tat (reciprocity) in any FRAND de!nition would be highly desirable commercially
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Penalties in commercial behavior
Violating a FRAND agreement
Can cause patent engagements Leading to product issues Loss of revenue Loss of reputation Loss of trust
#is is of nontrivial impact.
But honestly, NPEs don’t care, so a sufficient exclusion /withdrawal would be useful.
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Regulatory or Commercial?
Simply put:
FRAND is a regulatory tool to aid in long term adoption and stability, however, it is/must be powered by commercial acceptance.
However, FRAND must be limited in scope within standards developing organizations, since patent search and review can quickly overwhelm commercial organizations unless directed.
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