New Dimensions to thePatent Holdup Saga

Michael Lindsay, and Robert Skitol

5/24/2013
(Original Publish Date: 4/1/2013)

When SSO's consider protections for implementers, they must also consider costs to patent holders and incentives to patent holders and implementers to participate in standards development. Each of the six Hesse suggestions would impose burdens on patent holders, and in some instances the combination of those burdens might be enough to discourage patent holder participation in standards development. Moreover, some of these proposals might require significant funding, and an SSO must consider business models that would generate the funds without jeopardizing the SSO's basic standards development mission. On the other hand, thoughtful implementation of some, if not all, of these suggestions should mitigate the rising concern at both antitrust agencies about patent holdup relating to standards development activities; and that mitigation should be beneficial to patent-owning SSO participants.