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FRAND Regime ‘Not Working Very Well,’ DOJ Official Says

Law360, Washington (April 14, 2015, 6:32 PM EDT) -- A U.S. Department of Justice official on Tuesday stressed the need to clarify the fair, reasonable and non-discriminatory rules for licensing standard-essential patents, saying a recent spike in litigation over FRAND patent royalties showed the current system is "not working very well."

The widening gulf between SEP-owners and licensees over the value of patents and their accompanying royalties “is causing all sorts of market distortions,” Renata Hesse, a senior official in the department’s Antitrust Division, said during a panel discussion hosted by the Global Competition Review.

“People need to be at least speaking the same language when they’re sitting at the bargaining table...

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