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SEP License Fees Are Getting Out Of Hand, Officials Say

By Michael Macagnone (March 13, 2015, 8:26 PM EDT) -- Standard-essential patent holders should license their patents at realistic rates, federal officials said at a conference Friday, explaining that many IP owners base their rates on the profit a licensee's product reaps, rather than on the patented invention's value.

Licensing rates for SEPs are growing out of proportion, according to panelist Renata Hesse, deputy assistant attorney general for the U.S. Department of Justice's antitrust group. Speaking at Qualcomm Inc.'s second annual LeadershIP conference, Hesse said she has come across several examples of exorbitant licensing fees either quashing competition or hurting consumers by lowering a product's quality.

"Whatever is embodied in that...

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