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October 30, 2006
Patent Standard
Historically,
some standards committees have been naive, blind to adopting a
standard incorporating patented technology, with the result that adoptees of the
standard had to fork out patent license fees to a company having kept its mouth
shut until the standard was set and widely adopted. This happened with standards
for images (.gif & .jpeg), DRAM, and wireless communications. Now, at least one
standards setter has set a standard in being patent savvy.
VMEbus is a 25 year-old computer bus standard; computer buses being the pathways upon which intra-computer communication flows between components. The VMEbus International Trade Association (VITA) backs VSO, a non-profit organization that develops ongoing advancements in the VME standards. VME is used in an estimated 25 million products, including medical devices such as ultrasound and MRI, semiconductor manufacturing & industrial control equipment, and radar and avionics systems.
VITA propoed that companies adopting the standard be forced to disclose its patents relevant to implementing the VME standards, as well as licensing terms on a nondiscriminatory basis.
The problem with such a rational plan is potential antitrust trouble. But VITA asked the Department of Justice (DOJ) for its opinion. DOJ has a business review procedure where an organization may submit a proposed action and get a reply with regard to whether it is copasetic with the DOJ.
In this instance, DOJ gave the green light, foreseeing that formulating such standards benefits consumers. Thomas O. Barnett, DOJ Antitrust Division head, wrote in the review letter, "The standards set by VSO are a critical element of the growth and continued innovation in the VME industry. VITA's proposed patent policy is an attempt to preserve competition and thereby avoid unreasonable patent licensing terms that might threaten the success of future standards and to avoid disputes over licensing terms that can delay adoption and implementation after standards are set. Adopting this policy is a sensible effort by VITA to address a problem that is created by the standard-setting process itself."
Posted by Patent Hawk at October 30, 2006 9:09 PM | Patents In Business