Event Session
Panel #5 – Determining FRAND: What is a Reasonable Royalty Rate for an SEP Portfolio? *
November 14, 2023 @ 12:00 PM EST
12:00 PM ET
November 14, 2023
Panel #5 – Determining FRAND: What is a Reasonable Royalty Rate for an SEP Portfolio? *
Those contributing patented technologies to the development of a standard are asked to— and do agree to— provide a license at a FRAND (which stands for Fair, Reasonable and Non-Discriminatory) rate. In essence committing to providing access to patents that are or may become necessary to the implementation of the standard (i.e., standard essential patents).
In recent years, many of the largest implementers have began arguing that the FRAND commitment agreed by SEP owners is a “promise” to license. And even more recent arguments by implementers claim that innovators do not need or rely on licensing revenue because they must innovate anyway. These implementer positions seem to ignore the very real problems created by unwilling licensees—who are unwilling to take a license at any price. They also ignore the basic economic reality facing most SEP innovators, namely that their product is the technology and without licensing revenues they will go bankrupt, which only calls into question the creation of future standards.
Of course, on the flip side of the coin is the issue about what is a reasonable royalty rate for an SEP portfolio, which often times include numerous patents that do not actually relate to what was adopted in the standard.
We will begin our dive into the nuances by taking a look at: (1) What FRAND actually means, and whether every licensee is entitled to the same royalty rate; (2) What SEP owners actually agree to when they participate in an SDO; and (3) What is justifiable compensation that can be expected with FRAND obligations in play.
Materials
A New Path to Truly Fair FRAND Rates with the Cost-Based Approach
IEEE Approves Pro-Patent Holder Policy Updates
UK Court Hands Down Key FRAND Ruling in InterDigital v. Lenovo
As Apple/Optis Case Progresses in UK, A Look at the Worldwide FRAND Terms Set in May Judgment
Survey
https://www.surveymonkey.com/r/determing-FRAND
Those contributing patented technologies to the development of a standard are asked to— and do agree to— provide a license at a FRAND (which stands for Fair, Reasonable and Non-Discriminatory) rate. In essence committing to providing access to patents that are or may become necessary to the implementation of the standard (i.e., standard essential patents). In recent years, many of…
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