Judicially Determined FRAND Royalties

The Cambridge Handbook of Technical Standardization Law, Jorge L. Contreas, ed., Cambridge University Press, Forthcoming

Minnesota Legal Studies Research Paper No. 16-01

30 Pages Posted: 10 Jan 2016 Last revised: 25 Jul 2017

See all articles by Norman Siebrasse

Norman Siebrasse

University of New Brunswick - Fredericton - Faculty of Law

Thomas F. Cotter

University of Minnesota Law School

Date Written: January 8, 2016

Abstract

This chapter from the forthcoming Cambridge Handbook of Technical Standardization Law reviews the principles and methodologies courts have used for calculating royalties for the infringement of standard-essential patents (SEPs) that the owner is obligated to license on fair, reasonable and non-discriminatory (FRAND) terms. As we show, in the cases so far in which courts have made final judicial determinations of FRAND royalties -- the U.S. decisions in Microsoft, Innovatio, Ericsson, and CSIRO, the Japanese Apple v. Samsung judgment, the Chinese Huawei v. InterDigital matter, and the English Unwired Planet v. Huawei case -- have tended to focus on a relatively small number of additional considerations beyond the generally applicable principles used for calculating reasonable royalties. Although reasonable minds may disagree with specific features of the relevant decisions, overall the courts (correctly, in our view) have emphasized that the owner of an SEP should receive a royalty that is proportionate to the technology’s contribution to the value of standard -- a principle which, when properly applied, reduces concerns over the potential for SEPs to induce holdup and royalty stacking.

Keywords: Patents, Remedies, Damages, FRAND, RAND, Standard-Essential Patents, Royalties, Comparative Law, Intellectual Property

Suggested Citation

Siebrasse, Norman and Cotter, Thomas F., Judicially Determined FRAND Royalties (January 8, 2016). The Cambridge Handbook of Technical Standardization Law, Jorge L. Contreas, ed., Cambridge University Press, Forthcoming; Minnesota Legal Studies Research Paper No. 16-01. Available at SSRN: https://ssrn.com/abstract=2712837

Norman Siebrasse

University of New Brunswick - Fredericton - Faculty of Law ( email )

P.O. Box 4400
Fredericton, New Brunswick E3B 5A3
Canada
506-453-4725 (Phone)
506-453-4548 (Fax)

Thomas F. Cotter (Contact Author)

University of Minnesota Law School ( email )

229 19th Avenue South
Minneapolis, MN 55455
United States
612-624-7527 (Phone)

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