International Jurisdiction over Standard-Essential Patents

Abstract

A sizeable literature analyzes the appropriate interpretation of FRAND commitments for standard-
essential patents. With few exceptions, the literature disregards international dimensions, despite
the fact that most standards are used in international markets. This paper uses a simple economic
setting to assess pros and cons of the main jurisdictional bases in international law--the Territoriality and Nationality Principles -- when national regulatory authorities have conflicting preferences
regarding the interpretation of FRAND commitments. The paper identifies situations where the
bases can implement effcient outcomes, and where they fail. The paper also shows how non-
discrimination obligations might improve upon the outcomes.

Keywords: Standard-essential patents; international jurisdiction; default rules

JEL Classification: F15; K21; K33; L40; O38