Licensing of Standard Essential Patents (SEPs): Hold-up, reverse hold-up and ex-ante negotiation

Author: Sadao Nagaoka, Program Director / Faculty Fellow, RIETI

Technologies protected by standard essential patents (SEPs) are reflected in an industry standard under the condition that any rights holder makes the commitment to licensing such patents on fair, reasonable and non-discriminatory (FRAND) terms. However, this licensing process has come under scrutiny, as numerous disputes centering on licensing terms have occurred in recent years. Such disputes may underlie the publication of the Guide to Licensing Negotiations Involving Standard Essential Patents by the Japan Patent Office on June 5, 2018. This column offers brief explanations on the following three major issues in the licensing of SEPs, namely hold-up, reverse hold-up and ex-ante negotiations.

Read the entire article on the RIETI website

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