Ericsson Ruling Provides Guidance On FRAND Royalty Rates
By Fei Deng and Mario Lopez (January 12, 2018, 5:11 PM EST) -- On Nov. 8, 2017, Judge James Selna of the U.S. District Court in the Central District of California issued a decision (published later on Dec. 21) in TCL v. Ericsson determining fair, reasonable and nondiscriminatory (FRAND) royalty rates for Ericsson's standard-essential patent (SEP) portfolios for the 2G, 3G and 4G cellular standards. Not only does this decision establish the FRAND royalty rate for a major licensor's cellular SEP portfolios, but it also lays out an economic framework for determining FRAND royalty rates that may be used by manufacturers, SEP holders and courts in future FRAND rate-setting contexts. In this article, we unpack how the court arrived at the FRAND rates, highlight a few key takeaways and provide our own view on some of the relevant issues....
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