The Value of Standard Essential Patents and the Level of Licensing

34 Pages Posted: 1 Dec 2020

See all articles by Bowman Heiden

Bowman Heiden

Center for Intellectual Property - Chalmers University of Technology, University of Gothenburg, and Norwegian University of Science and Technology; University of California, Berkeley - Coleman Fung Institute for Engineering Leadership

Jorge Padilla

Compass Lexecon

Ruud Peters

affiliation not provided to SSRN

Date Written: October 23, 2020

Abstract

This paper argues that the value of standard essential patents (SEPs) should be independent of the level of licensing in the value chain. We further argue the value of enabling technologies, such as SEPs, is best determined in relation to the value it produces to the consumer or end-user, regardless of the licensing level. Finally, we discuss legal, economic, and organizational factors that can guide market actors to determine the optimal level of licensing through private ordering.

Keywords: Intellectual Property, Licensing, Royalty Base and Rate, Standard Essential Patents, Valuation

JEL Classification: L15, L24, O31, O34

Suggested Citation

Heiden, Bowman and Padilla, Jorge and Peters, Ruud, The Value of Standard Essential Patents and the Level of Licensing (October 23, 2020). Available at SSRN: https://ssrn.com/abstract=3717570 or http://dx.doi.org/10.2139/ssrn.3717570

Bowman Heiden (Contact Author)

Center for Intellectual Property - Chalmers University of Technology, University of Gothenburg, and Norwegian University of Science and Technology ( email )

Vasagatan 1
Gothenburg, 40530
Sweden

HOME PAGE: http://www.cip.gu.se

University of California, Berkeley - Coleman Fung Institute for Engineering Leadership ( email )

130 Blum Hall #5580
Berkeley, CA 94720-5580
United States

Jorge Padilla

Compass Lexecon ( email )

Paseo de la Castellana 7
Madrid, 28046
Spain

Ruud Peters

affiliation not provided to SSRN

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