FIGURE 6 THE IMPACT OF OPEN STANDARDS ON COMPETITION AND INNOVATION How do open standards impact competitive solution availability and market innovation? (select one response per row) Comp�titiv�n��� in th� �hort run 33% 43% 17% 6% 1.6% Comp�titiv�n��� in th� long run 46% 33% 15% 4% 1.4% Innovation in th� �hort run 37% 42% 15% 5% 1.8% 52% 29% 14% 4% 1.2% Innovation in th� long run Incr�a��� a lot Incr�a��� �lightly No chang� D�cr�a��� �lightly D�cr�a��� a lot 2023 STATE OF OPEN STANDARDS SURVEY, SELECTED RESPONSES Q22 (TABLE A18), Q23 (TABLE 19), SAMPLE SIZE = 442, N/A RESPONSES EXCLUDED FROM THE ANALYSIS. standard. When developing a standard, the IP policy for that devel- that 73% of organizations agree that the advantages of open stan- opment effort will commonly state how SEPs will be licensed. dards explicitly outweigh the patent royalty opportunities, compared Standards IP policies often require patent owners to offer a license FIGURE 7). Additionally, 72% of organiza- with just 8% that disagree ( to their patents that are SEPs under a RAND model to imple- tions agree that their customers prefer to use products and services menters of a standard. These RAND licenses often require a based on open standards, with only 8% disagreeing. This finding payment to the SEP owner but can also be licensed “royalty-free” supports both 1) there is a strategic value of patents to organizations, (RAND-RF). and 2) the strategic value to organizations is often not the monetary value that might be recouped through royalty opportunities. We do not test the theory of whether exclusive rights for patenting FIGURE 7, organizations generally report that inventions properly reward R&D investments in our study. However, Still, as illustrated in it is notable that despite the theoretical benefits, our survey found patent royalties derived from standards provide a good ROI (58% THE 2023 STATE OF OPEN STANDARDS EMPIRICAL RESEARCH ON THE TRANSITION TO OPEN STANDARDS 19