Enterprise Interoperability: Smart Services and Business Impact of Enterprise Interoperability

19 Licensing Terms for IoT Standard Setting: Do We Need “End-User” or “License-for-All” Concepts?

The development of 5G and IoT standards requires the active participation of small and medium-sized companies (SMEs). These SMEs do not always have the resources and expertise to participate in the work of standard development organizations (SDOs). The valuation of the patents in standards can be based on “license-for-all” or “end-user” concepts. A specific choice for use-based licensing terms by an SDO might drive SMEs more towards standard setting in consortia. This chapter will discuss the competition law aspects of both licensing concepts for SMEs and the recent communication in this field by the EU Commission.

19.1. Introduction

The intersection of standard setting, IPRs and competition law has become more and more complex in recent years. This standardization eco-system strongly depends on the willingness of companies (e.g. SMEs) to participate and share their proprietary solutions. The management of standardization and the treatment of intellectual property rights is therefore a crucial factor in the decision-making process of companies. Research shows that the IPR-policies of standardization bodies is a crucial element for the decision of whether to invest and participate in standard-setting activities. At the same time, standard setting facilitates exclusion (a common feature of patent rights) and collusion. As a result, antitrust authorities should identify the circumstances ...