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The complexity of a system standard setting
- Setting standards is a complex process that starts with the development of R&D and technologies, which may or may not be patented.
- When the need for a standard arises, the challenge of how to set the standard comes into play.
- There is rarely competition between standard setters, and internal rules are agreed upon by standard-setting organisations and participants, such as declarations of essential patents and FRAND commitments.
- The process involves bespoke innovation to fill gaps and multiple rounds of licensing negotiations between standard and patent holders and users.
- This complexity leads to potential issues in negotiations, arbitration, and litigation, especially concerning injunctions.
- Despite efforts over the past 20-25 years, there is no perfect system, but rather a need to lower expectations and aim for a system that works well enough not to hinder the economy. Striving for the most perfect system can create obstacles.