Reuters Summit-EU official wants disclosure to end patent ambush

(For other news from the Reuters Global Technology, Media and Telecoms Summit, click here )

By David Lawsky

PARIS, May 20 (Reuters) - A top European Commission official said on Tuesday the help of international bodies is needed to prevent companies from sneaking patented ideas into industry standards, resulting in higher prices for consumers.

Philip Lowe, director general for competition, said international standards organisations should seek full disclosure during negotiations "so you don't actually open the envelope afterwards and discover some nasty surprise in it."

Lowe said he was not referring to any specific case.

The Commission is investigating chip maker Rambus (RMBS.O: Quote, Profile, Research) and mobile phone maker Qualcomm (QCOM.O: Quote, Profile, Research) in separate cases over potential illegal overcharges after their ideas became part of worldwide standards.

Lowe told the Reuters Technology, Media and Telecoms Summit in Paris that everyone must know "not just the technical parameters but also the subsequent cost of licensing any (patents) necessary to implement the standard".

He said by telephone from Brussels that companies must also be clear about what royalty rates they would charge if their patented ideas were adopted.