FRAND- An Exception To The Laissez-Faire Structure?

Laissez-faire policy dictates that the parties are free to choose their business partners and there should be minimum government intervention. However, the issue of licensing of Standard Essential Patents and the terms of such licenses is increasing been recognised as an exception to the laissez-faire policy. Under the FRAND license scheme, a company can be compelled to license its patented technology to its competitors on Fair, Reasonable and Non-Discriminatory terms, popularly referred to as FRAND terms.

A Patent for an invention grants the proprietor the right to exclude others from using the invention within a particular jurisdiction for a limited period of time. An invention is patentable, if it is new, involves an inventive step, is industrially applicable and is not excluded subject matter.