FRAND MARKET FAILURE: IPXI'S STANDARDS-ESSENTIAL PATENT LICENSE EXCHANGE
In: Chicago-Kent Journal of Intellectual Property, Jg. 15 (2016), S. 419
academicJournal
Zugriff:
$=P420 INTRODUCTION It is well-documented that large numbers of patents cover key interoperability standards in fields such as wireless telecommunications, computer networking and semiconductor design. 1 As to any given standard, critical patents ("standards-essential patents" or "SEPs") can be controlled by anywhere from a handful to hundreds of different firms. And while some patent licenses are available on a collective basis through patent pools, the large majority of patents covering technical interoperability standards are not pooled, and must be licensed directly from the patent holders. 2 Moreover, concerns over antitrust and competition law discourage collective negotiation activity, in favor of patent licensing and royalties. Accordingly, most firms wishing to manufacture and sell standards-compliant products must engage in bilateral licensing negotiations with individual patent holders. 3 Some market participants have observed that the one-off process of bilateral licensing negotiation is time-consuming, costly, non-transparent and inefficient; in some cases, taking years to conclude a single licensing transaction. 4 Due to these high transaction costs, some patent holders elect not to pursue licensing of their standards-essential patents, and some product manufacturers may operate without all the licenses that may be legally required. 5 Moreover, even when licensing negotiations do occur, there can be considerable disagreement over royalty levels, and other terms that will satisfy a patent holder's obligation to grant licenses on "fair, reasonable and non-discriminatory" ("FRAND") terms, 6 as required by many standard-setting organizations ("SSOs"). 7 This lack of consensus has resulted in $=P421 significant disputes, ...
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FRAND MARKET FAILURE: IPXI'S STANDARDS-ESSENTIAL PATENT LICENSE EXCHANGE
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Autor/in / Beteiligte Person: | CONTRERAS, JORGE L. |
Zeitschrift: | Chicago-Kent Journal of Intellectual Property, Jg. 15 (2016), S. 419 |
Veröffentlichung: | 2016 |
Medientyp: | academicJournal |
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