Brussels, June 24, 2016 – Standards setting organisations (SSOs) obligate contributors to license Standards Essential Patents (SEPs) on Fair, Reasonable and Non-discriminatory (FRAND) terms. However, some SEP holders are failing to comply with the Non-discriminatory requirement of FRAND and are refusing to license subsystems manufacturers. This paper addresses the negative impact of such discriminatory licensing practice on the product ecosystem and on consumers. The paper explains why this practice is not acceptable and why FRAND SEP licenses must be available to all entities, regardless of their role within the product supply chain.
Today’s increasingly connected world demands cooperation and interoperation among many different products. Such interconnection requires common understanding of interfaces across products from multiple companies. To achieve this, industry players cooperate through Standards Setting Organisations (SSOs) to establish shared specifications, standards. To ensure widespread adoption, SSOs obligate contributors to license Standards Essential Patents (SEPs) on Fair, Reasonable and Non-discriminatory (FRAND) terms. However, some SEP holders are failing to comply with the Non-discriminatory requirement of FRAND and are refusing to license subsystems manufacturers. This paper addresses the negative impact of such discriminatory licensing practice on the product ecosystem and on consumers. This practice is not acceptable and FRAND SEP licenses must be available to all entities, regardless of their role within the product supply chain.
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