NJTIP 8th Annual Symposium FRAND Overview

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NJTIP 8th Annual Symposium FRAND Overview Jorge L. Contreras American University – Washington College of Law March 8, 2013

Standards Development Environment Interoperability standards Voluntary consensus standards development organizations (SDOs) Contreras/FRAND - Feb. 23, 2013

Patent Issues in Standard Setting Patent stacking Patent “hold up” Contreras/FRAND - Feb. 23, 2013

SDO Policy Solutions Disclosure Policies Licensing Policies SDO participants must disclose essential patents prior to approval Licensing Policies SDO participants commit to license essential patents [often on Fair, Reasonable and Nondiscriminatory (FRAND) terms] Contreras/FRAND - Feb. 23, 2013

This should work, in theory… Under Nash bargaining conditions: bilateral ex ante negotiations between patent holders and standards implementers with genuine non-discrimination commitments should result in consistent, equilibrium royalties (Gilbert 2011) Contreras/FRAND - Feb. 23, 2013

But … FRAND Smart Phone Litigation 2010-2013 Contreras/FRAND - Feb. 23, 2013