Update on the antitrust ghost in the standard-setting machine

Assistant Attorney General Hewitt Pate addressed his concern regarding the "antitrust ghost" in the standard-setting machine. He noted about the disagreement in the royal rate, the use of antitrust policy to prevent price competition and that firms should be allowed to negotiate royalty in a standard setting effort. On the other hand, FTC Chair Deborah Majoras addressed her concern noting the agreement involving RAND rates are vague, and that antitrust concerns may have unduly inhibited such measure. She further pointed out that patent holder's voluntary and unilateral disclosure of its maximum royalty rate is highly unlikely to require antitrust scrutiny and that announcing one's price before sale could lead to an antitrust violation. Meanwhile, Hewlett-Packard proposed several changes to the current IEEE patent policy to enhance the transparency and utility of disclosures about patent claims and license terms.