Standard Essential Patents-The IEEE Approach [Patent Reviews]

Patents on technologies necessary to comply with standards set by organizations like the IEEE can be valuable because manufacturers conforming to the standard must use and pay for the patented technology. Patents essential to a particular standard raise the possibility for abusive conduct. The risk is that a participant in a standard-setting body who has patent rights might persuade the standard setters to define the standard to require infringement of his patent, which then forces the industry to pay exorbitant royalties once manufacturers have made substantial capital investments to meet the standard. This is particularly troublesome when the patent owner has lured the other participants into the trap. The IEEE has adopted rules to reduce the possibility of such an abuse. Discusses what these rules and guidelines are.