FRAND Royalty Rate Determination of Standard Essential Patents
How can standard essential patents be valued? What is the FRAND (fair, reasonable and non-discriminatory) value of standard essential patents?
Given the increasing need to determine the value of Standard Essential Patents for licensing purposes, we engaged in a comprehensive analysis of the current state of the art. We assessed existing international case law and analysed what methods have been recognized by Courts around the world. This assessment was fed into our own assessment of what methods can be made use of when determining a FRAND royalty rate.
That FRAND royalty rates can be determined is beyond debate. Rather, our analysis suggests that two principal methods for FRAND royalty rate calculation arise. The findings formed the cornerstone of our client’s argument on the value of a FRAND royalty rate.