THE USE AND THREAT OF INJUNCTIONS IN THE RAND CONTEXT

Abstract

We model a dispute between the owner of a standard-essential patent and an implementer of the standard over whether the patentee's license offer is reasonable and non-discriminatory (RAND). An injunction is not ruled out, yet that threat does not lead to holdup. A key element is that the implementer always has a last-resort ability to accept license terms that are either certified by a court as RAND or mutually agreed upon by the patentee and implementer.

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