Research

The Value of Standard Essential Patents and the Level of Licensing - coming soon

by Bowman Heiden, Jorge Padilla, Ruud Peters

13 October 2020

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 organisational factors that can guide market actors to determine the optimal 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. Read the paper on SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3717570

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