4iP News

SEP Value and the Level of Licensing - new paper coming soon

13 October 2020

by Bowman Heiden, Jorge Padilla, Ruud Peters

This paper develops an SEP licensing model that proposes the determination of SEP value should be dependent on the use-case and independent of the level of licensing in the value chain. We show that the value of enabling technologies, such as ICT standards, is best determined in relation to the value it produces to the consumer or end-user, regardless of the licensing level. Independent of SEP value, we then discuss the legal, economic, and organisational factors that can guide market actors to determine the level of licensing through private ordering. Two cases studies, regarding optical standards and cellular standards, are presented to illustrate SEP licensing challenges and solutions in practice.

Full paper to appear shortly on SSRN.