Economic Principles Behind Innovatio Approach To RAND Rate
October 25, 2013, 2:16 PM EDT
Law360, New York (October 25, 2013, 2:16 PM EDT) -- On Sept. 27, U.S. District Judge James Holderman determined a reasonable and nondiscriminatory rate for patents owned by Innovatio IP Ventures LLC that were essential to the 802.11 Wi-Fi standard. Innovatio had asserted these standard-essential patents against Wi-Fi end products manufactured by Cisco Systems Inc., Hewlett-Packard Co., NETGEAR Inc., Motorola Solutions Inc. and SonicWALL Inc.
Judge Holderman adopted a “top-down” approach to calculating a RAND royalty. This calculation began by assessing the maximum royalty burden that could be supported for all Wi-Fi SEPs. Then, taking into...