IPRI news(reported by Xu Jifei and photoed by Zhu Ge)

Recently, FRAND principles have been a very hot top in IP (patent) filed, international and domestic experts have made a large numbers of research. Many campers also have great interests in understanding and application of FRAND principles.

In the morning of July 12rd, after the opening ceremony, Professor Lin Xiuqin made the first lecture of summer camp, which is Industry Standards and FRAND Licensing: Trend and Implications.

At the first beginning, Professor Lin introduced the importance of industrial standard and FRAND principles using an example of telecommunication industry. FRAND are abbreviations of Fair, Reasonable, and Non-discriminatory. It means that patent owners should treat fairly to all standard users. It neither refuses standard users’ license request unreasonably, not treats differently to standard users on license royalty charge and other restriction conditions. Currently, many telecommunication organizations require patent owners to sign FRAND declaration in order to regulate IP license during standard setting when considering to include patent into telecommunication standard. Currently, world depends on information and telecommunication technology to support economic activities and basic public service, e.g. medical service more and more. Same international standards exercised in different areas and countries are beneficial to reducing products’ cost and promoting cross-region distribution of products.

As the lecture went on, Professor Lin introduced typical standard, IP strategy, latest cased related to SEP and FRAND principles, FRAND principles and injunctions further. According to ETSI’s regulation, all member countries should exercise its reasonable efforts and timely inform ETSI its own basic IP. as to license, member is entitled to three month non-revocable written commitment of SEP right owner when eligible to FRAND principles. As to cases, Professor Lin introduced Apple vs. Samsung tried by KFTC. This case focused on issue whether seeking of injunction violates Korean Fair Trade Law. Campers developed deeper understandings of FRAND principles and its application based on case analysis.

At then end of lecture, Professor Lin summarized that SEP and FRAND principles are highly important for some industries with a necessary feature of compatibility. An open, dynamic and innovative standard is highly beneficial for social development.

In Q&A, Illka asked a question as to definition of FRAND principles. Professor Lin thought, it should be advised to apprehend combing backgrounds of anti-monopoly law and anti-trust law. Fair and reasonable intertwine with each other and should not be explained separately. Non-discriminatory does not mean same price to all users, however different royalty charge in different situations should be explained reasonably. Generally speaking, definition of FRAND principles should not be provided too detailed and should be left to two parties of negotiation.

Weather in July was quite damp and hot in Xiamen. However rain for days didn’t affect enthusiasm of campers. This lecture ended, however tour of IP study and exploration does not end. It is hoped that campers can further mastery of knowledge, broaden the horizon and enjoy the charm of IP in the following study.