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What is the licensing framework of standard essential patents (SEPs) for connectivity standards such as 5G and Wi-Fi? How will the framework change with the Internet of Things (IoT)? This book provides comprehensive answers to these questions. For over two decades, connectivity standards have been the subject of litigation and controversy around the globe. Now, with the introduction of 5G and the emergence of the world of connected objects, or the IoT, the licensing framework for SEPs is becoming even more contentious. In order to bring clarity to the debate, this book analyses and explains key components of a fair, reasonable and non-discriminatory (FRAND) licence for SEPs; clarifies the economic, policy and market background of SEP disputes; examines the interrelated application of contract, patent and competition laws; and describes the approaches by courts and regulators in the EU, US and the UK. Importantly, the book also assesses how the experience from the smartphone and ICT industries can be applied in a new environment of the IoT, and considers what needs to be changed in the future SEP licensing landscape. The book provides a holistic coverage of SEP licensing issues in an attempt to reduce uncertainty within this highly complex and technical area, and will be useful to practitioners, policy makers, SMEs and large technology companies in the IoT, as well as academics interested in the field.
Based on author's thesis (doctoral - University College London, 2019).
This book is open access under a CC BY 4.0 license. With technology standards becoming increasingly common, particularly in the information and communications technology (ICT) sector, the complexities and contradictions at the interface of intellectual property law and competition law have emerged strongly. This book talks about how the regulatory agencies and courts in the United States, European Union and India are dealing with the rising allegations of anti-competitive behaviour by standard essential patent (SEP) holders. It also discusses the role of standards setting organizations / standards developing organizations (SSO/SDO) and the various players involved in implementing the standards that influence practices and internal dynamics in the ICT sector. This book includes discussions on fair, reasonable and non-discriminatory (FRAND) licensing terms and the complexities that arise when both licensors and licensees of SEPs differ on what they mean by “fair”, “reasonable” and “non-discriminatory” terms. It also addresses topics such as the appropriate royalty base, calculation of FRAND rates and concerns related to FRAND commitments and the role of Federal Trade Commission (FTC) in collaborative standard setting process. This book provides a wide range of valuable information and is a useful tool for graduate students, academics and researchers.
This open access edited book captures the complexities and conflicts arising at the interface of intellectual property rights (IPR) and competition law. To do so, it discusses four specific themes: (a) policies governing functioning of standard setting organizations (SSOs), transparency and incentivising future innovation; (b) issue of royalties for standard essential patents (SEPs) and related disputes; (c) due process principles, procedural fairness and best practices in competition law; and (d) coherence of patent policies and consonance with competition law to support innovation in new technologies. Many countries have formulated policies and re-oriented their economies to foster technological innovation as it is seen as a major source of economic growth. At the same time, there have been tensions between patent laws and competition laws, despite the fact that both are intended to enhance consumer welfare. In this regard, licensing of SEPs has been debated extensively, although in most instances, innovators and implementers successfully negotiate licensing of SEPs. However, there have been instances where disagreements on royalty base and royalty rates, terms of licensing, bundling of patents in licenses, pooling of licenses have arisen, and this has resulted in a surge of litigation in various jurisdictions and also drawn the attention of competition/anti-trust regulators. Further, a lingering lack of consensus among scholars, industry experts and regulators regarding solutions and techniques that are apposite in these matters across jurisdictions has added to the confusion. This book looks at the processes adopted by the competition/anti-trust regulators to apply the principles of due process and procedural fairness in investigating abuse of dominance cases against innovators.
Patent Challenges for Standard-Setting in the Global Economy: Lessons from Information and Communication Technology examines how leading national and multinational standard-setting organizations (SSOs) address patent disclosures, licensing terms, transfers of patent ownership, and other issues that arise in connection with developing technical standards for consumer and other microelectronic products, associated software and components, and communications networks including the Internet. Attempting to balance the interests of patent holders, other participants in standard-setting, standards implementers, and consumers, the report calls on SSOs to develop more explicit policies to avoid patent holdup and royalty-stacking, ensure that licensing commitments carry over to new owners of the patents incorporated in standards, and limit injunctions for infringement of patents with those licensing commitments. The report recommends government measures to increase the transparency of patent ownership and use of standards information to improve patent quality and to reduce conflicts of laws across countries.
Through a collaboration among twenty legal scholars from North America, Europe and Asia, this book presents an international consensus on the use of patent remedies for complex products such as smartphones, computer networks, and the Internet of Things. This title is also available as Open Access on Cambridge Core.
Introduction : As a Matter of Standard for Asia and Beyond? / Kung-Chung Liu -- De facto Standards / Jiyu Zhang -- De Jure Standard Setting in the Telecom Industry : Its Evolution and the Developing Country Case for Reform / Prashant Reddy Thikkavarapu -- Standard Setting Organizations, Standard-Essential Patents and FRAND Terms : An Economic Observation / Felix Conde, Lanhua Li and Can Huang -- US Perspectives / William Hubbard -- Asian Perspectives / Jyh-An Lee and Sang Jo Jong -- UK Perspectives / Peter Damerell and Tess Waldron -- Unprepared, Unable and Unwilling to Deal with FRAND Licensing of SEPs in Taiwan / Kung-Chung Liu -- Japan / Masabumi Suzuki -- Korea / Jinyul Ju -- IPR Protection and Antitrust Regulation of SEPs in China / Liyang Hou and Mengchi Tian -- Standard Essential Patents and FRAND Licensing : A View from India / -- Biswajit Dhar and Reji K. Joseph -- The Paradox of Relief: Reconciling Remedies in Patent Law and Competition Law for FRAND Cases in India / Feroz Ali -- FRAND as a Legal Concept at the Intersection between Competition Law and Intellectual Property Law : The Road Ahead for Singapore? / Burton Ong -- European Experiences: EU and Germany / Matthias Leistner -- Stakeholders' Views on Policy Concerns and Regulatory Framework for Self-regulation by SSOs / Fair Standards Alliance and Shengtao Hu -- Propositions for Regulated Self-regulation of SSOs / Kung-Chung Liu and Haoran Zhang.
Introduction --Standards and Standard Essential Patents --The Interplay between Intellectual Property Rights and Competition Law --The SEP Owner's Market Power --Deceptive Conduct during the Standardization Process --Strategic Licensing Practices --Interim Observations: Divergences, Legal Gaps, and Legal Uncertainty --Antitrust Remedies --Mechanisms Preventing Disputes in the SEP Context: The Informal Antitrust Intervention --Conclusion.
Patents as an Incentive for Innovation Edited by Rafal Sikorski & Zaneta Zemla-Pacud Patents are a reward for human inventiveness. A well-functioning patent system must provide incentives for innovation, safeguard dynamic competition and protect the public interest – a balancing act fraught with difficulty in the ‘connected’ global world. This ground-breaking book is the first to deeply analyse how patent law today performs its function of stimulating innovation in the crucial sectors of healthcare, agriculture, artificial intelligence and communications technology. Patent specialists, practitioners and scholars from various jurisdictions thoroughly describe how patent rights can be deployed to incentivize investments in researching and developing socially critical innovations without sacrificing the public’s interest in sharing the benefits that are produced. Among the emerging issues of patent rights investigated are the following: protectability and morality of according private rights over material derived from the human body; licensing on fair, reasonable and non-discriminatory (FRAND) terms; the supplementary protection certificate (SPC) manufacturing waiver; patent eligibility of artificial intelligence-related inventions; excessive enforcement of patents by patent assertion entities; enforcement of second medical use innovations; the so-called farmer’s privilege, the farm-save seed exemption, and breeders’ rights; international trade regulations and their influence on patent systems; human enhancement technologies and the consequences of patenting them; specifics of patent protection for biologic medicines; challenges posed by artificial intelligence for the disclosure requirement in patent law; and standard essential patent licensing, particularly in the context of the 5G standard. Perspectives taken into consideration by the authors include protectability criteria, length and scope of the granted protection, mechanisms for dealing with the friction between generalized application and specialized concerns, and rights enforcement. These aspects are analysed on the domestic, international and global levels. The COVID-19 pandemic has highlighted the urgent need to strike the right balance between innovation and access in healthcare and other technologies, a need rooted in patent law. Because the problems discussed – and solutions offered – in this collection of expert essays are of tremendous practical and cultural significance, the book will be of immeasurable value to practitioners, policymakers and researchers in patent law and other fields of intellectual property law.
This book provides an overview of the current debate over whether a holder of a patent essential to an industry standard, who has promised to license such patented technology on fair, reasonable, and non-discriminatory (FRAND) terms, may nevertheless obtain an injunction from a federal court or an exclusion order from the International Trade Commission against infringing products that implement the industry standard. The book first summarises several fundamental principles of patent law, then discusses the relationship between standard-setting organisations and FRAND licensing. It continues with an explanation of the role and duties of the International Trade Commission (ITC) and how there are different legal standards that apply to the award of injunctive relief in federal courts and in the ITC. Also discussed are the recent developments relating to standard-essential patents and FRAND licensing that have occurred in federal agencies responsible for antitrust enforcement, ITC cases, and congressional hearings.