How SEP Holders Can Mitigate The Effects Of Holdout

By Jonathan Putnam, Hieu Luu and Awo Bos (July 29, 2021, 3:22 PM EDT) -- Patent holdout occurs when a manufacturer implements standard-essential patents without a license.

The German Federal Court of Justice recently addressed holdout strategies in the 2020 Sisvel International S.A. v. Haier Deutschland GmbH decision,[1] and, in the 2019 TQ Delta LLC v. ZyXEL Communications Ltd. decision,[2] the U.K. High Court of Justice found that the defendant engaged in holdout for years.

These recent decisions are welcome developments for SEP holders. As holdout is more widely recognized in courts around the world, it is important to understand its effects and why they occur.

Our article clarifies the different market mechanisms through which holdout...

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