Tuesday, January 31, 2017
Roberto Grasso, Wilmer advocates Standard Essential Patents: Royalty Determination in the Supply Chain.
ABSTRACT: Royalties must be calculated based, at most, on the smallest saleable patent-practicing unit, rather than the price of the end-product that incorporates that component. The value of a technology must correspond to the incremental inventive value of that technology as compared to alternative technologies before the standard is set. In case of complex end-products, a royalty must take into account the potential aggregate royalty demands for other SEPs. An SEP-holder must negotiate with and provide a FRAND license to anyone who requests it, regardless of which level of the value chain it operates.