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An Analysis of the Federal Circuit's Decision in Ericsson v. D-Link

Competition Policy International, CPI Antitrust Chronicle, March 2015 (1)

8 Pages Posted: 5 Oct 2015  

Anne Layne-Farrar

Charles River Associates; Northwestern University

Koren W. Wong-Ervin

George Mason University, Scalia Law School - Global Antitrust Institute

Date Written: March 1, 2015

Abstract

On December 4, 2014, the U.S. Court of Appeals for the Federal Circuit issued a decision in Ericsson v. D-Link, providing substantial guidance to lower courts on how to calculate royalty rates for standard-essential patents (“SEPs”) encumbered by a commitment to license on reasonable and nondiscriminatory (“RAND”) terms. This article analyzes that decision, providing economic commentary on (i) its key holdings with respect to the appropriate methodology, (ii) the incremental value approach, (iii) when to consider concerns about hold-up and royalty stacking, and (iv) the use of the “smallest salable patent practicing unit” (“SSPPU”).

Keywords: FRAND, SEPs, standard-essential patents, Ericsson v. D-Link, holdup, royalty stacking, smallest salable patent praticing unit, SSPPU

Suggested Citation

Layne-Farrar, Anne and Wong-Ervin, Koren W., An Analysis of the Federal Circuit's Decision in Ericsson v. D-Link (March 1, 2015). Competition Policy International, CPI Antitrust Chronicle, March 2015 (1). Available at SSRN: https://ssrn.com/abstract=2669269

Anne Layne-Farrar

Charles River Associates ( email )

1 South Wacker Drive
Suite 3400
Chicago, IL 60606
United States
312-377-9238 (Phone)

HOME PAGE: http://www.crai.com

Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

Koren W. Wong-Ervin (Contact Author)

George Mason University, Scalia Law School - Global Antitrust Institute ( email )

3301 Fairfax Drive
Arlington, VA 22201
United States
310-779-0982 (Phone)

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