by Mirza Usama Baig, Ingra Marangoni and Tuğçe Özkepir Master Students, Technical University Berlin

26 March 2020

In this student contribution to 4iP Council's research, the authors focus on two different methodologies (for the calculation of royalties): Smallest Salable Patent-Practicing Unit (SSPPU) and Entire Market Value Rule (EMVR). They first introduce an overview of what surrounds the discussion, which institutions are involved in the patent ecosystem, as well as where the SSPPU vs. EMVR discussion arises. They then address the theoretical background of the SSPPU creation and evolution, focusing on the economic disadvantages of SSPPU. Furthermore, they list the consequences of applying a too low basis, mainly attempting to clarify the drawbacks of applying SSPPU.