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Fair, Reasonable and Non-discriminatory (FRAND) Licensing Terms. Research Analysis of a Controversial Concept

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  • Yann Ménière

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

The complexity of standards in Information and Communication Technology (ICT) creates a tension between the need to reward the owners of Standard Essential Patents (SEPs) that may cover standard specifications and the need to make standards available to all for public use. In the last few years, this tension has crystallized into a difficult debate on licensing principles that must be Fair, Reasonable and Non-Discriminatory (FRAND or FRAND licensing). The purpose of this report is to provide a balanced account of the current controversy relating to the FRAND licensing of standard essential patents and to explore future research topics in this area. It draws on the arguments that arose at an expert workshop held under Chatham House rules at the Institute for Prospective Technological Studies (IPTS) and on an extensive review of the related literature.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Yann Ménière, 2015. "Fair, Reasonable and Non-discriminatory (FRAND) Licensing Terms. Research Analysis of a Controversial Concept," Post-Print hal-01261021, HAL.
    • Handle: RePEc:hal:journl:hal-01261021
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    References listed on IDEAS

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    1. Baron, Justus & Ménière, Yann & Pohlmann, Tim, 2014. "Standards, consortia, and innovation," International Journal of Industrial Organization, Elsevier, vol. 36(C), pages 22-35.
    2. Blind, Knut & Gauch, Stephan, 2008. "Trends in ICT standards: The relationship between European standardisation bodies and standards consortia," Telecommunications Policy, Elsevier, vol. 32(7), pages 503-513, August.
    3. Blind, Knut & Cremers, Katrin & Mueller, Elisabeth, 2009. "The influence of strategic patenting on companies' patent portfolios," Research Policy, Elsevier, vol. 38(2), pages 428-436, March.
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    6. Berger, Florian & Blind, Knut & Thumm, Nikolaus, 2012. "Filing behaviour regarding essential patents in industry standards," Research Policy, Elsevier, vol. 41(1), pages 216-225.
    7. Josh Lerner & Jean Tirole, 2004. "Efficient Patent Pools," American Economic Review, American Economic Association, vol. 94(3), pages 691-711, June.
    8. Sir Robin Jacob, 2013. "Competition Authorities Support Grasshoppers: Competition Law as a Threat to Innovation," CPI Journal, Competition Policy International, vol. 9.
    9. Timothy S. Simcoe & Stuart J.H. Graham & Maryann P. Feldman, 2009. "Competing on Standards? Entrepreneurship, Intellectual Property, and Platform Technologies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 775-816, September.
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    Citations

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    Cited by:

    1. Chryssoula Pentheroudakis, 2015. "Innovation in the European Digital Single Market: The Role of Patents," JRC Research Reports JRC96728, Joint Research Centre.
    2. Chryssoula Pentheroudakis & Justus A. Baron, 2016. "Licensing Terms of Standard Essential Patents: A Comprehensive Analysis of Cases," JRC Research Reports JRC104068, Joint Research Centre.
    3. Hougaard, Jens Leth & Ko, Chiu Yu & Zhang, Xuyao, 2023. "A conceptual model for FRAND royalty setting," Mathematical Social Sciences, Elsevier, vol. 123(C), pages 167-176.

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    More about this item

    Keywords

    License;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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