Evaluating Standards Essential Patents in Mobile Cellular
les Nouvelles - Journal of the Licensing Executives Society, Volume LIV No. 4, December 2019
8 Pages Posted: 18 Dec 2019
Date Written: October 15, 2019
Companies develop open standards at their own expense and make them public, so that anyone can build products that use them. This at first sight seems economically unsustainable: how can some companies afford to contribute time and effort into developing standards for public use, when competitors who do not contribute are able to use the results? The answer to this seeming contradiction is patent royalties. Companies that contribute novel ideas to the standards protect them by filing patents. Where a patent is used in the standard, it is called a “Standards Essential Patent” (SEP). Companies that own SEPs charge royalties for their use, and the stronger the portfolio of SEPs owned by a company the higher the potential royalties. This article examines how the size of a SEP portfolio can be estimated using the 4G/LTE cellular system as an example. It provides new results on the number of SEPs in an LTE phone and discusses previous studies.
Keywords: standards in essential patents in mobile cellular, mobile cellular, SEP, 4G/LTE cellular system
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