A conceptual model for FRAND royalty setting
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A conceptual model for FRAND royalty setting. / Hougaard, Jens Leth; Ko, Chiu Yu ; Zhang, Xuyao .
In: Mathematical Social Sciences, Vol. 123, 2023, p. 167-176.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - A conceptual model for FRAND royalty setting
AU - Hougaard, Jens Leth
AU - Ko, Chiu Yu
AU - Zhang, Xuyao
PY - 2023
Y1 - 2023
N2 - Setting an industry-wide standard is crucial for the interoperability, compatibility, and efficiency of information and communication technologies. To minimize holdup problems, patent holders are often required to ex-ante commit to licensing their technologies under Fair, Reasonable, and Non-Discriminatory (FRAND) terms. Yet, there is little consensus, in both courtrooms and industries, on the exact meaning of FRAND. We propose a new framework that enables a precise distinction: fairness in the distribution of royalty payments among patent users, and reasonableness in setting the size of the compensation to the patent holder, where both the size and the distribution of payments are determined in a non-discriminatory way that ensures similar firms are treated similarly.
AB - Setting an industry-wide standard is crucial for the interoperability, compatibility, and efficiency of information and communication technologies. To minimize holdup problems, patent holders are often required to ex-ante commit to licensing their technologies under Fair, Reasonable, and Non-Discriminatory (FRAND) terms. Yet, there is little consensus, in both courtrooms and industries, on the exact meaning of FRAND. We propose a new framework that enables a precise distinction: fairness in the distribution of royalty payments among patent users, and reasonableness in setting the size of the compensation to the patent holder, where both the size and the distribution of payments are determined in a non-discriminatory way that ensures similar firms are treated similarly.
U2 - 10.1016/j.mathsocsci.2023.03.005
DO - 10.1016/j.mathsocsci.2023.03.005
M3 - Journal article
VL - 123
SP - 167
EP - 176
JO - Mathematical Social Sciences
JF - Mathematical Social Sciences
SN - 0165-4896
ER -
ID: 344807792