RE: placing a dollar value on IETF IP.

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Title: Re: placing a dollar value on IETF IP.
There was indeed a major struggle over the standardization of the light bulb socket. And the sad part is that due to patent encumberances the US unfortunately ended up with the inferior product!
 
Neither Swan nor Edison thought much about the mount. It was Swan's brother who did most to refine and perfect the base. Edison's screw thread came lose leading Swan to invent the bayonet mount. He also invented Vitrite, the glassy substance used as an insulator.
 
There was something of a platform war which led to calls for a standard base as misconfigured adaptors were causing houses to burn down. The Edison thread won in the US because the patent had expired and everyone could use it without royalty.
 
It is also a neat rebuttal to the claim that network effects do not exist - as Margolis and co claimed in their laughable tract. If the issue were decided on technical grounds alone the US and Europe would have chosen the same base years ago. The US has not moved to the superior Swan mount because the short term switching costs outweigh the long term advantages. Change is only possible when a technology disruption occurs that negates the advantage of the legacy base. In the case of lightbulbs it is compact flourescents and LED bulbs, in the case of keyboards it would probably take really good handwriting recognition.


From: ietf-bounces@xxxxxxxx on behalf of Andrew G. Malis
Sent: Tue 10/28/2008 9:53 AM
To: TS Glassey
Cc: tbray@xxxxxxxxxxxxxx; IETF Discussion; ipr-wg@xxxxxxxx
Subject: Re: placing a dollar value on IETF IP.

Todd,

I see your point about the cost of producing standards. However,
having been both on the vendor and service provider sides of the
street, I can tell you that most (all?) service providers generally
require their vendors to implement standards so that their products
are interoperable and meet particular requirements - in an RFP, it's
much easier to put in a list of RFCs, ITU-T recommendations, etc.,
rather than have to list every individual requirement. As a result,
vendors don't generally specifically track their standards
participation costs - it's just a part of the cost of doing business
in a particular market.

It all goes back to the light bulb as a great example of standards
setting - back before there was a standard base for bulbs, I'm sure
every light bulb manufacturer had a vested interest in their
pre-standard bases and sockets - whether it screwed left or right or
used push-in pins, the size of the base, etc., and sent people to the
meetings to represent their interests when that particular standard
was being set. It was just a necessary cost of being in the light bulb
business at that particular time.

Cheers,
Andy

On Sun, Oct 26, 2008 at 8:54 PM, TS Glassey <tglassey@xxxxxxxxxxxxx> wrote:
>
> ----- Original Message ----- From: "Andrew G. Malis" <agmalis@xxxxxxxxx>
> To: <tbray@xxxxxxxxxxxxxx>
> Cc: "TS Glassey" <tglassey@xxxxxxxxxxxxx>; "IETF Discussion"
> <ietf@xxxxxxxx>; <ipr-wg@xxxxxxxx>
> Sent: Saturday, October 25, 2008 2:53 PM
> Subject: Re: placing a dollar value on IETF IP.
>
>
>> Todd,
>>
>> I generally agree with Tim that it would be difficult to put a value
>> on any IETF submission without an actual transfer of assets of some
>> sort to set a price.
>
> The costs of replicating the works - say from a tech writer skilled in an
> area is a reasonable place to start. Take the hourly rate and then multiply
> that times the number of hours involved and the number of people.
>
> I suggested that the unbundling of the R&D costs was appropriate since all
> the IETF publishes is a set of document-standards per se.
>
>>
>> However, in general, if a company feels that there is IPR value in
>> technology they are going to include in a submission (and this really
>> deals with ANY kind of standards submission, not just to the IETF),
>
> How do you figure they 'deal' with how much it costs to send people to the
> IETF several times a year. Also to cover the costs of their local
> participation.
>
>> they will most probably submit a patent application prior to the
>> standards submission. So the existence of a patent declaration
>> accompanying the submission at least provides a clue that the
>> submitting company feels that there is some value there (else they
>> wouldn't have bothered with the patent application).
>
> Only if there is a real program inside the Sponsor to accomplish that. This
> is one of the issues in the IETF. There are many who are really enamored
> with the idea that the IETF is a fraternal benevolent society rather than a
> Intellectual Proeperty War Chest disguised cleverly as an International
> Networking SDO.
>
>>
>> However, a value generally can't be set until the company actually
>> starts to issue patent licenses. The value could be as little as zero
>> if no other companies feel compelled to license the technology.
>>
>> As always, the "value of the workproduct", as you put it, is set by the
>> market.
>
> But the costs of creating it are not. That was the point. The baseline is
> the costs of replacing the written work.
>
>>
>> Cheers,
>> Andy
>>
>> On Fri, Oct 24, 2008 at 11:42 AM, Tim Bray <tbray@xxxxxxxxxxxxxx> wrote:
>>>
>>> On Fri, Oct 24, 2008 at 8:27 AM, TS Glassey <tglassey@xxxxxxxxxxxxx>
>>> wrote:
>>>>
>>>> Since there is now a specific value estimated by the LINUX community at
>>>> 1.4B
>>>> for the kernel itself
>>>
>>> Hey, I've done an analysis and found that my toenail clippings are
>>> worth $3.8762 billion.  That kernel-valuation exercise is the silliest
>>> kind of science fiction.  Let me let you in on a little secret:
>>> Everything in the world has a value, and that value is exactly what
>>> people are prepared to pay for it.  No more, no less.
>>>
>>> On payment of a generous consulting fee, I would be delighted to
>>> "estimate a specific value" for any given RFC or even I-D.  I'll even
>>> issue gold-framed certificates you can mount on the wall.  -Tim
>>>
>>>> , the IETF can no longer hide its head in the sand
>>>> claiming that its workproduct has no specific value. This also means
>>>> that
>>>> ANY AND ALL contributions to the IETF no matter when they happened now
>>>> need
>>>> to be formally acknowledged for their financial value at the time of
>>>> their
>>>> contribution.
>>>>
>>>> This is not an OPTION.
>>>>
>>>> Todd Glassey
>>>> _______________________________________________
>>>> Ietf mailing list
>>>> Ietf@xxxxxxxx
>>>> https://www.ietf.org/mailman/listinfo/ietf
>>>>
>>> _______________________________________________
>>> Ietf mailing list
>>> Ietf@xxxxxxxx
>>> https://www.ietf.org/mailman/listinfo/ietf
>>>
>
>
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