The Supreme Court has held that the English courts do have jurisdiction to determine the FRAND terms of a global license to standard essential patents (SEPs).
Tell us more about Standard Essential Patents. What does this ruling mean for SEP holders?
The Supreme Court of England and Wales and lower Courts before, have done their best to issue a multifaceted and rich judgment. But there may be a couple of issues with this judgment. For me, this judgment once more emphasizes the need to come to grips with the novel market dynamics presented by international economic integration. The borderless world is a business reality, but the law has yet to catch up with it.
The standards, which this ruling addresses, are core to the telecom industry. 3G, 4G/LTE but also WiFi (which this judgment does not address) have paved the way for real time interaction across the globe. Where the further evolution of such standards will take us, remains yet to be seen. For sure, 5G will be instrumental for next generation technologies such as the Internet of Things.
Patents that read on standards, also called standard essential patents, are subject to the FRAND commitment. This is because they can be prone to anticompetitive behavior. FRAND stands for ‘fair, reasonable and non-discriminatory.’ In the case at hand, the IPR policy of ETSI, the European Telecommunications Standards Institute played an important role. This policy seeks to set out how patents that read on ETSI standards are to be treated.
In this case, the Court adequately recognized the commercial tensions that prevail in this sector. As such, the Court argued that FRAND is a balancing mechanism. On the one hand side adequate access to standards need to be assured, on the other hand side patented inventions should also be incentivized. Royalty stacking was also recognized as a key aspect of FRAND. Royalty stacking can be described as the risk of a cumulative royalty payment a downstream innovator may be faced with. This is explained by the fact that there are many different patent owners who claim their stake on a standard.
I tend to think that the ruling will attract litigation into the U.K. This will be good news for the local litigation industry, but may have adverse effects on the larger economy. In the difficult times we currently face, the UK needs to assure it does its best for its consumers, its start-ups and scale ups, SMEs and local industry. The UK also cannot neglect its international trade position.
What are the repercussions for the licensing of intellectual property in the telecoms sector?
This sector has experienced a lot of litigation over standard essential patents. The press has labelled these disputes as ‘patent wars.’ For both the licensor and the licensee, the commercial stakes are significant. After all, these standards formed the baseline of a novel way of doing business around the world. It comes hence as no surprise that Court awarded damages have been significant.
How will this jurisdiction affect consumers?
Consumers in the UK may be faced with less choice. This is because technology companies may be carefully considering whether to expose their global licensing requirements to the scrutiny of the UK.
What would have been the implications if the decision went the other way?
The decision rightly points to a host of unresolved issues. It points out how highly complex today’s international business relations are. Had the British Courts decided that they can only issue a national licensing rate, existing market practice of pursuing legal disputes in a couple of key jurisdictions would have continued.
How will the decision impact implementors?
Downstream innovators need to be able to adequately access standards. Patents should not be an obstacle. The decision shifts the burden of proof and this is very expensive. Also, the decision sanctions a global FRAND licensing rate with an injunction in the U.K. Downstream innovators may carefully weigh risks and benefits against each other.
How will the ruling help turn the UK into a global hub for patent litigation?
That the UK is in a position to issue global FRAND rates, is an important value proposition for a patentee. It appears that this will now not be necessary as the UK is in a position to issue global FRAND rates. If and to what extent other countries will accept this remains to be seen.
Do you think technology companies will be prompted to reconsider their market position in the U.K?
This may be a possibility. In TQ Delta vs Zyxel, the defendant declared it would rather accept an injunction and exit the UK market than accept a global FRAND rate set by the English Court. (See: TQ Delta vs Zyxel. Case No: HP-2017-000045. http://www.bailii.org/ew/cases/EWHC/Ch/2019/562.html, Skeleton Argument on behalf of Zyxel. Claim Numbers: HP-2017-000045 and HP-2019-000009, p. 11 as well as hearing on April 17 2019, p. 97-99 and hearing on March 18, p. 51- 52)
How will this affect negotiations over Brexit?
There are 25 European countries that are trying to set up a Common Court for cross border patent enforcement, called the UPC (Unified Patent Court). The UK left UPC in July 2020. If and to what extent the UK will need to find its own governance structures once it has rejected the acquis communautaire remains to be seen. I foresee here a potential for conflict. I await with interest the further evolution on this topic.
Do you see more FRAND litigation on the horizon?
I do not expect this sector to come to peace any time soon. The commercial stakes are important and the sector is traditionally very litigious. Unless the underlying business SEPs protect diminishes significantly, I see no end in sight to the disputes over standard essential patents.
Michel Robert, CEO of Epsilon
Tell us about your partnership with Aviatrix to provide the latest multi-cloud networking service?
We recently partnered with Aviatrix to deliver our own multi-cloud solution. It’s an end-to-end multi-cloud service running on Epsilon’s global network with the automation, operational visibility and control that enterprises need to simplify cloud networking.
Epsilon Cloud Networking addresses the real challenges in enterprise networking within and across the clouds. We’ve combined our expertise in global connectivity with Aviatrix’s cloud orchestration platform to deliver an end-to-end multi-cloud service, and we’re confident in delivering a best-in-class cloud networking solution for our customers.
This year we’re really focusing on our partner strategy. We already have a strong ecosystem of networks, cloud service providers and internet exchange partners stretching across 260+ points of presence (PoPs) in 41 cities globally. We are looking to enhance our services by working with great technical partners, like Aviatrix, to enhance our interconnection services. There are not many companies out there that can offer their customers the comprehensive end-to-end solutions like we do, with rapid responsiveness and one point of contact.
How can Epsilon customers benefit?
Our solution makes multi-cloud networking simple for enterprises. Epsilon Cloud Networking leverages a multi-cloud network architecture with a common network data and operational control plane. Through point and click workflows and infrastructure as code automation, enterprises using the multi-cloud service no longer need to undertake the complex and manual processes of native cloud networking. The service provides everything an enterprise needs to transform their cloud networking through a single relationship.
Our solution really accelerates cloud network deployments to support the pace of business and application owners, which is a key benefit for customers. Our customers can move faster to meet demands at the click of a button. This provides full visibility across the clouds, simplifies their cloud network operations and can identify and resolve problems rapidly.
Security and troubleshooting are also a big part of the solution. Our managed service provider and enterprise customers can easily solve multi-cloud networking, security and troubleshooting issues. The multi-cloud network architecture has a common network data and operational control plane that gives them the full control they need.
What kind of challenges do you hope to overcome with this new multi-cloud service?
More and more enterprise IT organisations are using public cloud to support business transformation. The pandemic has really increased the pace of transformation for many companies, and enterprises are facing challenges including limited visibility, lack of network control and skill gaps, when connecting applications and data in the cloud.
A lot of enterprises don’t achieve expected return on investment (ROI) in cloud because of operational and network complexity. While many enterprises have started application migrations to the cloud, cost management remains an issue. On top of this, many cloud providers don’t provide the tools for operational visibility, control or security. Our new multi-cloud solution seeks to help businesses tackle these challenges more effectively.
It makes cloud networking simple for enterprises, with everything they need to transform their cloud networking through a single relationship with Epsilon.
Is the multi-cloud environment suitable for all enterprises?
Yes. In general, all industries have adopted the cloud, but individual companies will have to assess which applications are the most suitable to migrate to cloud platforms depending on types of the business applications and data, security and compliance requirements.
Our multi-cloud networking solution can be used by all kinds of enterprises across verticals, from technology to automotive, manufacturing or hospitality. Any enterprise looking to benefit from a multi-cloud environment can simplify their journey by using our solution. We provide connectivity from the last mile locations all the way to the cloud.
Talk us through Epsilon’s Network as a Service (NaaS) strategy? How will it play a role in the enterprise market in 2021?
Infiny currently offers three powerful networking solutions: Interconnection between leading data centres, direct connection to cloud providers and access to the world’s largest internet exchanges. We also have an Access solution for connecting branch offices, on-prem data centres and partner locations around the world to the Epsilon network and its cloud networking and interconnection services.
Infiny makes it much simpler for businesses of all kinds to meet their connectivity needs in one place, by removing the need to manage multiple vendor relationships. As the networking ecosystem gets more and more complex, I think businesses will be looking out for the simplest and fastest way to connect globally, which we’re able to do.
I believe in 2021, we’ll see drive towards platform-centric connectivity such as NaaS. These platforms deliver global connectivity using a self-service model, allowing the customers to buy and manage their network services on-demand.
By building solutions through partnerships, we can deliver best-of-breed solutions to our customers, more quickly and more scalable than if we had built the solution ourselves. Rather than competing against specialists in certain fields, we believe in partnering with some of these companies to offer the best possible solutions to our customers.
Partnerships are a big part of our business strategy. Our differentiator is that we can offer our customers the best-in-class solutions with high levels of responsiveness and flexibility. A huge part of that comes from partnering with top companies across different tech sectors, which can provide us with the tools we need to serve even more of our customers’ needs.
Our goal is to enable businesses to connect to the global cloud infrastructure they need in a simple and powerful way. We’re excited to announce more partnerships that we’ve got planned for the near future, which will enhance our offering further.
The pandemic has undoubtedly accelerated the pace of transformation. To what extent will digital workspace growth push cloud adoption and spending?
2020 was definitely a year of transformation. With a surge in the number of people working from home, there’s been huge demand for digital workspace solutions. As a result, cloud adoption and spending has increased dramatically, and it’s looking like this will continue in 2021. Remote working will start to become the new normal as businesses of all kinds have realised this year that productivity can continue even without having teams in an office all the time. It will definitely be interesting to see how this accelerates cloud transformation in 2021 – I think we’ll continue to see growth, but at a steadier pace than 2020.
How does the new networking service enable customers to meet their security needs?
Our Cloud Networking solution provides enterprises with added security for distributed cloud environments. To get into the details, it offers advance security features including multi-cloud network segmentation, high-performance encryption, firewall insertion, CloudWAN, secure user access, secure site-to-cloud and ingress and egress. We provide all the tools that enterprises and managed service providers need to secure their customers’ cloud deployments and benefit from a multi-cloud environment, via our private network.
What are some of the unique challenges we face with cloud adoption?
Cloud adoption isn’t always straightforward, especially when enterprises are trying to connect within and between multiple different clouds and regions. Some of these challenges include skills gaps, limited visibility, lack of network control and operational complexity. Not all enterprises are experts in cloud, so without an expert partner it can be difficult to really unlock the potential of their cloud environments.
Many enterprises have invested large amounts of resources in building business applications within a public cloud environment but end up neglecting the connectivity underlay. Any application performance will ultimately be underpinned by the network it’s delivered on. Enterprises are needing more than basic connectivity from the standard internet connections, and that can be a challenge without the right partner.
How will 5G rollout take cloud computing to the next level?
5G will be an alternative access technology for connecting the end users. It will contribute towards making a whole load of technologies more efficient, including cloud computing. With the rollout of 5G accelerating in 2021, cloud computing is really going to go to the next level. 5G can provide speeds 100x higher and capacity 100x more than 4G, on top of much lower latencies. This is going to transform customer experiences and improve business operations too.
I’m excited to see the impact of 5G on cloud-based applications and services, and just how much faster it will be to move data between locations. With better efficiencies come the opportunity to spend more time innovating too, so 5G could really be the key to new innovation in cloud native business and consumer applications that we don’t even know about yet.
Mohanned Alosta, CEO of Libyana Telecom
How has Libyana handled the effects of the COVID-19 pandemic? What were the main challenges? And how were they met?
The COVID-19 pandemic has deeply impacted the entire world, we, at Libyana, faced challenging issues on both the service providing and operation sides; however, we find ourselves in the right direction facing all of them.
On the service side, the lockdown naturally boosted network traffic, we were ready for this specifically since Libyana started network expansion in 2019, and continuously till this day, to ensure service quality for our customers. Our network expands simultaneously with users’ demand, maintaining the best user experience and enhancing it.
On the management side, our main focus centers on protecting our employees and partners aiming to minimize the risk of infection, by restructuring our operations throughout 2020, keeping only 30 percent of employees working from the office, with the remaining team working remotely.
At the same time, we utilized all solutions such as ERP, Online Dealer, Online Meeting to keep the business running normally regardless of all these circumstances. This proved to be an experience full of lessons learnt which will help us achieve our digital transformation plans.
In 2019, Libyana partnered with Expertise France to boost the local startup scene. Can you tell us more about this initiative? And what other efforts have been made to push startups forward?
Libyana gives special attention to innovation and entrepreneurship as a part of its social responsibility; the initiative with Expertise France aims to establish a first-of-its-kind center, which includes a business incubator and accelerator, called FabLab. In addition, we launched a new project, called Stream, offering all sorts of services and training to support entrepreneurs and MSMEs in Libya.
Stream provides training and support both technical and financial to 101 participants from 10 different cities through 7 programs over the course of 15 months. Through this project, 21 idea holders have managed to successfully transform their ideas into startups, while 76 percent of the startups that previously participated in the program stated that they experienced an increase in revenue following enrollment allowing for the creation of 126 jobs.
How are you planning to accelerate the company’s growth in 2021?
As the main telecom operator in Libya with all circumstances currently facing us and the telecoms industry, it is a big challenge for Libyana to keep stable growth in 2021.
First, as all online traffic increases due to lockdowns, we will focus on maintaining our network expansion and optimization efforts in an all-level capacity, capability, and stability, to be ready for any sudden traffic increase.
Second, we will continue our digital transformation journey for both our subscriber services and company operations, to improve the user experience and company efficiency during and after the pandemic.
Due to the effect of the on-going worldwide economic depression by the coronavirus, ARPU degradation is expected, thus, we are building more digital services to provide diverse service offerings to our subscribers.
With the African continent being heavily reliant on FinTech, are there any plans for Libyana to jump into the financial services sector?
As part of Libyana’s vision of enhancing our customers’ lives by connecting people in every way shape or form, we are planning to enter the FinTech sector by offering several solutions such as mobile money and online payments, which are part of our digital transformation strategy. The financial sector in Libya faces several issues, which is why our aim is to fill this gap and connect all Libyans on the financial scope as we do in telecommunications.
With 5G being the talk of the town in the telecoms industry, can you tell us about Libyana’s 5G efforts within the country?
Libyana is ready to embrace 5G, where the current network supports 5G evolution smoothly. Currently, we are analyzing the best business models for 5G and its application for Libya’s needs, as we are aiming to provide excellent service experiences and best service value to all Libyans.
Are there plans for the company to expand outside of Libya?
Currently, we are working for more cooperation with global operators to improve the subscriber roaming experience. For the time being, expanding into other markets is not considered a top priority on our list since times are still fragile due to the economic recession and the COVID-19 situation, but we continue to keep eyes on the global situation and all opportunities around us.
As technological advancements such as 5G, IoT, AI, AR, VR, and the like are starting to hit the mainstream, which one interests you the most? Why?
Both 5G and IoT are our highest priority, where the demand for M2M and massive data has drastically increased. A massive country such as Libya, which mainly leans on its oil and gas industry, needs to discover new opportunities in order to be ready for the 4th Industrial revolution.
Cybersecurity has become a must for all ICT/tech companies, especially during the COVID-era. How has Libyana strengthened its defenses against cybercriminals?
Cybersecurity is one of the highest priorities for us at Libyana, as we have three lines of defense:
- The first line is all employees implement self-control over the cybersecurity of products such as strong cypher, VPN, identity authentication, and so on.
- The second line is identifying and protecting all the service units against any cybersecurity risks to systems, assets, data, and capabilities to ensure delivery of critical infrastructure services.
- The third line is a Detect and Respond mechanism, implemented appropriately into our activities to identify the occurrence of a cyber breach and take action on it immediately.
What is your stance regarding the ban on Huawei in some countries?
We understand the decision of some operators to exclude Huawei, however, its worthy to note that the ban has caused an interruption within Huawei’s supply chain. This has made the Chinese telco enter “survival mode,” which makes it face uncertain risks within its network operations and evolution, especially to operators that exclusively purchase equipment from Huawei.
Huawei is considered a titan in the telcoms world due to its strong comprehensive strengths, which is why we, at Libyana, have constructed parts of our network with Huawei equipment. In parallel, we can only hope that the company resolves its disputes with the United States as fast as possible to avoid the operating risk of its customers, and to protect investments and maintain competitiveness in the 5G era.
How did Libyana weather the storm during years of war and a struggling local economy?
Nowadays, telecoms is considered one of the most important sectors in Libya, keeping our customers connected regardless of the current fractured society, providing services to the whole country during all crises.
In case of any force majeure, we do our best to solve issues immediately guaranteeing civilians the communication they need. As the ceasefire agreement was signed earlier this year, it is expected that next year the satiation in Libya will hopefully become better and Libyana will continue its work to provide stable services.
We do not only consider ourselves as a telecom operator, but more of a basic society service provider; thus, regardless of what happens, Libyana’s main target is to always guarantee high-quality service to our subscribers while maintaining our contribution to the country.
Joe Fizor, TBI Lead Solutions Engineer and Tech Guru
How will 5G impact enterprise mobility in 2021?
5G will be a source of additional redundancy and diversity to company networks, providing much higher bandwidth and throughput. From a mobile perspective, 5G will allow several variations that need to be considered, such as 5G narrowband which will be great for IoT devices. End users looking for high performance and the ability to work remotely will need to focus on the wideband offerings which will have the higher speeds, low latency and high-capacity consumers have come to expect when hearing 5G.
How will remote work evolve in the coming year? How can businesses prepare for that change?
As many businesses continue to have an ongoing, larger remote workforce, we will see businesses running a cost analysis of price per square foot of office space versus the price of SD-WAN and/or business grade connections to remote users. Security has to be at the forefront too – we are no longer protected by the four walls of the office, but rather facing a diverse set of users on known and unknown devices. Focusing on Zero-Trust security architectures will continue to be critical. With the introduction of SASE as a newer framework, we will continue to see providers push identity access management (IAM), single sign-on (SSO), multi-factor authentication (MFA), etc. to secure remote users. Additionally, as we continue the shift to remote work, businesses will need to balance their approach to gaining visibility into users/applications while not overstepping and straining their users through micro-management. The ability to enact “big brother” roles may prove too tempting for many. Unfortunately, we may not like it as end users, but visibility and analytics will continue to grow and be a top priority.
Growth in 5G mobility requires greater security measures in parallel. What can a company do from now?
Though mobility security is difficult, we cannot rely on the expensive firewall deployed on the edge of the network, sitting in the office that no one has entered in 9 months. Businesses need to understand the options regarding mobile device management (MDM), endpoint security, identity access management (IAM), and single sign-on (SSO)/Multi-factor authentication (MFA). Through MDM, companies can secure and remotely wipe devices if lost or stolen, push applications to ensure users have the tools they need, setup containers for business applications if the device is personal and go as far as expense management. This will help secure devices, but companies can go further with IAM and endpoint security to limit access based on location, device type, time of day, etc. Also, keep in mind that the security measures everyone needs to consider with 5G are no different from 4G LTE. Now there is more speed, more capacity, and more damage that could be done through malicious attacks. For example, DDoS attacks can – and have – stemmed from IoT devices. So, if you consider the high performance increases we will see with 5G, now with far greater bandwidth, many could be setting themselves up to witness some truly gigantic attacks.
When training/retraining a remote team (in preparation for 2021), what should be at the top of the agenda?
Top of the agenda for training should be discussing and reviewing business approved tools, applications as well as devices, along with security awareness training. If the business does not approve of a BYOD (Bring Your Own Device) policy, then that needs reinforcement. Remote users can lead to nightmare scenarios for IT professionals and implementing policies to minimize attack vectors is critical. Communicating this to remote teams is just as critical, and educating them on how to stop phishing attacks, best practices when sharing information, keeping devices updated, and leveraging strong passwords will help strengthen every companies’ security posture.
What challenges/risks are the remote workforce likely to face in the coming year? How to mitigate these risks?
The remote workforce overall is an easy target for many attackers. Businesses and their employees need to be on the lookout for fraudulent emails and increased phishing attacks. Unsecure Wi-Fi connections can lead to man in the middle attacks, connectivity issues, and unknown third-party applications. The best advice I can give is to stay diligent. Check who is sending emails/attachments. If a request seems strange. . . pick up the phone and call to confirm the request. It really boils down to the same security framework we use on the network – Zero Trust. Assume nothing is safe and use caution in all aspects of work and personal life.
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