On the 'non-discrimination' aspect of FRAND licensing: A response to the Indian Competition Commission's recent orders

Autor: David J. Teece, Edward F Sherry, Peter Grindley
Rok vydání: 2018
Předmět:
Zdroj: IIMB Management Review, Vol 30, Iss 1, Pp 10-26 (2018)
Teece, DJ; Sherry, EF; & Grindley, PC. (2018). On the “non-discrimination” aspect of FRAND licensing: A response to the Indian Competition Commission's recent orders. IIMB Management Review, 30(1), 10-26. doi: 10.1016/j.iimb.2017.09.002. UC Berkeley: Retrieved from: http://www.escholarship.org/uc/item/72x9f9zc
ISSN: 0970-3896
DOI: 10.1016/j.iimb.2017.09.002
Popis: The Indian Competition Commission has recently challenged Ericsson's practice of licensing its standards-essential patents (SEPs), relating to cellular standards, for percentage-based royalties based on the selling prices of the end-user licensed products. Ericsson had committed to the relevant standards-development organisation that it would license its SEPs on “fair, reasonable and non-discriminatory” (“FRAND”) terms. The Commission contends that such royalties are “prima facie discriminatory” in violation of the Competition Act, in the (novel) sense that different products selling for different prices pay different per-unit royalties. We analyse the broader implications of the Commission's reasoning, concerned that if adopted, the Commission's reasoning would disrupt common industry licensing practices. Keywords: Patents, Licensing, Discrimination, Telecommunications, FRAND, Standards, Industry practice
Databáze: OpenAIRE