The interplay between IP rights and competition law in the context of standardization

Legal context: This article attempts to analyse the patent ambush scenarioin the context of both competition law and IP rights under USand EC law. The regulators such as the US FTC and European Commissionattempt to combat the abuses, however the legal tools availablerequire a very difficult balancing act between patent law (whichprotects innovation) and competition law (which attempts tohamper abuse of the free market rules). Key points: The patent ambush scenario employed within a standard-settingorganization poses an important threat of jeopardizing the goalsof achieving a common standard. The response to the problemconcentrates on ensuring that the rules applicable to standard-settingorganizations' members prevent abuse and/or reaching reasonableand non-discriminatory licensing terms to stop deriving unduebenefits from proprietary technologies embedded in the standard. Practical significance: As the information exchange technologies become increasinglypopular, the need to ensure interoperability between productsof different manufacturers employing these technologies becomescrucial for market success. This consequently increases thedanger of malignant abuse of co-operation within the standardsetting-organizations. The law may need to step in to securetechnological progress free of risks such as the patent ambush.