FRAND Royalties and Injunctions for Standard Essential Patents

Jay Pil Choi

8 citations0/0 files storedGlobal Economic Review

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Intellectual Property and Patents Intellectual Property Law Merger and Competition Analysis

Abstract

I develop a stylized model of court procedures that resolve disputes concerning FRAND-encumbered standard essential patents (SEPs). I analyze the effects of injunctions and potential court-imposed FRAND rates on negotiated royalty rates. The SEP-holders’ ability to hold-up is constrained by the prospect of the court-imposed license terms in case of disputes, but is not completely eliminated. Possible mechanisms to address the residual hold-up power of the SEP-holders are discussed.

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References

2006On the Simple Economics of Advertising, Marketing, and Product Design 2002Intellectual Property Rights and Standard-Setting Organizations 2015Standard-Essential Patents 2010Injunctions, Hold-Up, and Patent Royalties 2013A Simple Approach to Setting Reasonable Royalties for Standard-Essential Patents 2003Intellectual Property Rights and Standard-Setting Organizations 2012Patent Hold‐Up and Antitrust: How A Well‐Intentioned Rule Could Retard Innovation 2008REVISITING INJUNCTIVE RELIEF: INTERPRETING EBAY IN HIGH-TECH INDUSTRIES WITH NON-PRACTICING PATENT HOLDERS

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2019Licensing Essential Patents: The Non‐Discriminatory Commitment and Hold‐Up 2023Licensing standard‐essential patents with costly enforcement

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