Trento University March 16, 2011
-
Upload
hasad-mckee -
Category
Documents
-
view
44 -
download
3
description
Transcript of Trento University March 16, 2011
![Page 1: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/1.jpg)
Competition Issues in Standard Competition Issues in Standard Setting: Setting:
The New Horizontal Guidelines The New Horizontal Guidelines
Simonetta Vezzoso, Simonetta Vezzoso, Trento UniversityTrento University
Trento UniversityMarch 16, 2011
![Page 2: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/2.jpg)
Standards everywhere, but mostly unnoticed
![Page 3: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/3.jpg)
•Standards: de jure, de facto, open, proprietary…
•Anticipatory, Enabling and Responsive Standardization •Standard Setting Organizations - International Telecommunications Union (ITU) 1865 - International Organization for Standardization (ISO) 1947- Institute for Electrical and Electronics Engineers (IEEE) - Worldwide Web Consortium (W3C)- Internet Engineering Task Force (IETF)- etc.
•Safety, Health, Compatibily (etc) Standards
Some Basics
![Page 4: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/4.jpg)
Economic significance of standards
• Economies of scale (reduction of variety)
• Reduction of information asymmetry (less adverse selection)
• Reduction of transaction (e.g. search costs) and communication costs
• Network externalities
• Lock-in avoidance
• Part of the institutional infrastructure relevant to incremental innovation
• Etc.
![Page 5: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/5.jpg)
Hindrances to effective standard adoption
• Users’ reluctance to move to new standard (also because of switching costs)
• Inappropriate timing of standardization (too early or too late relative to the stage of technology maturity)
• Opportunism of market participants
![Page 6: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/6.jpg)
“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty or justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary.”
Adam Smith, The Wealth of Nations (1776)
![Page 7: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/7.jpg)
Classification Societies
•Register Society (1760)
• IACS - International Associationof Classification Societies (1968)
- more than 90% the world's cargo carrying tonnage
COMMISSION DECISION of 14/10/2009relating to a proceeding under Article 101 TFEU (ex art. 81 ECT) Case 39416 - SHIP CLASSIFICATION
![Page 8: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/8.jpg)
Competition Assessment: Relevant Markets
• product or service market or markets to which the standard relates
• relevant technology market (inter-technology competition)
• Market for standard-setting
![Page 9: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/9.jpg)
T1 T5T4T3T2
S
SSO P
SSO P
SSO P
SSO P
PLICENCE
M MMM
![Page 10: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/10.jpg)
Standards: Art. 101 Issues
• promotion of horizontal price fixing
• exclusion of competitors
• allocation of markets and territories
Anticompetitive
SSO policies should prevent collusivebehaviour among SSO members
![Page 11: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/11.jpg)
Standards: Art. 102 Issues
SSO’s context
Patent Ambush
Patent hold-up: breach of FRAND obligations
• Patent infringement cases
e.g. German Supreme Court, Standard-Spundfass, 2004
![Page 12: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/12.jpg)
ART. 101TFEU
ART.102 TFEU
ART.102 TFEU
![Page 13: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/13.jpg)
COMMUNICATIO
N FROM THE COMMISSION
Guidelines on the applicability of
Article 101 of the Treaty on the
Functioning of the European
Union to horizontal co-
operation agreements
(O.J. 14.1.2011)
![Page 14: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/14.jpg)
Key Points
• Prevention of collusive behaviour andof art. 102 abuses
• «safe harbour»
FRAND commitment
ex-ante IPR disclosure («good faith»; «reasonable endevours»
• pro-competitiveness of ex-ante disclosure maximum royalty rates
![Page 15: Trento University March 16, 2011](https://reader038.fdocuments.in/reader038/viewer/2022102713/568131f7550346895d98532f/html5/thumbnails/15.jpg)
Conclusion
• Standards and Art.101 issues: guidance really helpful?
• Effective prevention of IPR ambush and/or hold-up?
• Effective guidance on difficult economic and legal issues?
Need for a new, «holistic» approach to standardization
SSO rendered increasingly «necessary» in high-tech industries also by an inadequate IPR policy