In today's technology-heavy world, technical
interoperability standards are quite common. Because those
standards are often patented, patent owners may have the ability to
extract a monopoly price and some argue those owners can "reduce[] the number of competitors practicing the
standard." Holders of patents covering technology
used in setting standards – so-called standard essential
patents (SEP) – must agree, among other things, to license
such patents on fair, reasonable, and non-discriminatory (FRAND)
terms in order to avoid potential anti-competitive effects of this
collaborative effort. However, if a party practices the
SEP without a license, typical standard setting agreements will
permit the patent owner to pursue remedies available under the
patent laws, including seeking an injunction.
