FRAND royalties and injunctions for standard essential patents

Jay Pil Choi

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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Year of publication:	2014
Authors:	Choi, Jay Pil
Publisher:	München : CESifo
Subject:	standard essential patents \| FRAND \| injunctions \| hold-up \| patent litigation \| Patent \| Patentrecht \| Patent law \| Theorie \| Theory \| Standardisierung \| Standardization \| Gewerblicher Rechtsschutz \| Industrial property rights \| Lizenz \| Licence \| Anreiz \| Incentives \| Innovation \| Zivilprozess \| Civil litigation \| Rechtsprechung \| Court decisions