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Covenants | 119 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Covenants
Authored by: Ian Al on Monday, October 01 2012 @ 02:33 AM EDT
I am not a lawyer; not even an English lawyer, but I have personal experience of covenants. My house was sold by the original developers under covenants that, for instance, prohibited the erection of short-wave aerials (antennae). The covenants continued to apply within the terms and conditions of sale for each subsequent sale.

The covenant attached to the property and not to the original participants in the sale contract.

I don't see a parallel in the case of the FRAND agreement. There is no original sale contract terms and conditions for the covenant to be associated. I think the FRAND agreement is just that; an agreement between parties to an association. I don't think it is binding on the parties except that failure to abide by the association terms and conditions puts membership of the association at risk.

I found this on the ITU website:
FRAND licensing declaration

FRAND = Fair, Reasonable and Non-Discriminatory

ETSI requesting IPR owner to give undertaking to grant licences under fair reasonable and non-dicriminatory (FRAND) terms and conditions

Importance:

  • avoiding blocking of standard following a refusal to license after creation of standard

  • ensuring access to standard

    But: IPR owner has the free choice to give or to refuse FRAND licensing declaration

  • inclusion of IPR in a standard requires the explicit consent of the IPR owner

    ETSI disposes of a procedure in case of a refusal Distinguishes between situations pre and post publication of a standard, between members and third parties + is taking into account the availability of alternative technologies

    Dr. Michael Fröhlich
    ITU Workshop on “ICT Standards and Intellectual Property Rights”
    ETSI Legal Affairs Director
    Geneva, 01 July 2008
    World Class Standards

    FRAND licensing declaration

    Terms and conditions of the licenses to be determined bilaterally by the parties of the agreement + enforcement based on existing legal system

  • Then: subsequent licensing negotiations were largely unproblematic

  • Now: increase of cases where licensing parties have a different understanding of the meanings of FRAND (e.g. unreasonable licensors asking for excessive royalties, discriminatory licensing practice of IPR owner), resulting in an increase of litigation
  • Note that the IPR owner gives a declaration giving an undertaking to grant a licence and that is a free choice. If the owner does not want to give the declaration then the IPR is not encompassed by the standard. The [contract] Terms and Conditions of the licenses are to be determined bilaterally by the parties of the agreement, with enforcement based on the existing legal system. That constitutes the 'negotiation' to which PJ refers.

    In summary, the ITU FRAND Declaration is not a third party contractual agreement. There is no contract until the patent owner and the potential licensee agree one after bilateral negotiation between the two parties. The legal jurisdiction is that with jurisdiction over the patent agreement. Apple are wrong in claiming that the ITU FRAND Declaration constitutes a legal licence agreement.

    ---
    Regards
    Ian Al
    Software Patents: It's the disclosed functions in the patent, stupid!

    [ Reply to This | Parent | # ]

    And how do Covenants apply when one party refuses to uphold their side?
    Authored by: Anonymous on Monday, October 01 2012 @ 09:49 AM EDT

    After all... MicroSoft has - to date - refused to enter negotiations to even start to discuss the license rate.

    RAS

    [ Reply to This | Parent | # ]

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