Joseph Schuman

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Inside Intel’s Intellectually Dubious Patent Study

Instead Intel focuses on the potential evils of royalty stacking without at all acknowledging that market values for validly patented technologies exist because these technologies improve a standard and strengthen an industry that uses the standard. Intel notes that U.S. judges in some cases have made determinations on the value of specific FRAND royalties less than those sought by inventing companies. But Intel then argues even these FRAND royalties represent a breach of FRAND commitments. And then, to support its royalty-stacking argument, Intel presents a theoretical “stack” price based on multiplying a rate sought for one SEP by the estimated total number of SEPs in a standard. By using only a rate sought, as opposed to a rate accepted by an implementer or approved by a court; by ignoring cross-licensing; and assuming falsely that all patents are worth the same, Intel arrives at a large number intended – it seems – to provoke fears about the “grave threat.”