Introduction
Patent licensing plays a significant role in the advancement of technology. Some patented inventions have over time become so fundamental to an industry that they have been declared as a standard in that industry. Such patents are known as Standard Essential Patents (“SEPs”). Given the importance of SEPs in technological advancements, licensing an SEP raises unique legal and commercial issues that do not arise in ordinary patent licensing.
In this article, we examine the concept of FRAND licensing for SEPs, the legal principles underpinning FRAND commitments, the commercial dynamics of FRAND negotiations, and the key issues that continue to shape this area of patent law.
What is FRAND?