Read the article here.
Under US patent law, a FRAND technology (fair, reasonable, and nondiscriminatory patent licensing) is standard and essential to the ongoing operation of a particular product. Thus companies that own such patents are not allowed to “gouge” licensees. Licensors should consider whether or not the license they are granting covers a FRAND technology, because if so, the licensor will be expected to provide its product or component to another company on fair and reasonable terms. These terms might differ significantly from what would otherwise be standard in the marketplace. Licensees will also want to know whether the technology they seek to use is covered by FRAND. This will place them in a stronger bargaining position.
This article concerns a lawsuit between Apple and Ericsson. The companies were in disagreement about whether the Ericsson LTE technology in Apple’s products is essential to cellular operation, and were in dispute over the fairness of a FRAND license extension Apple was expected to sign.
Take away:
- It is important for both licensors and licensees of patented IP to determine whether the IP is standard and essential to the ongoing operation of a particular product, and thus covered by the FRAND provisions of US patent law.
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Rajah Lehal: Rajah is the Founder and CEO of Clausehound.com. Rajah received his M.B.A. and J.D. degrees, from the University of Western Ontario Richard Ivey School of Business and the Faculty of Law respectively, during which time he was Co-President of Entrepreneurs@Ivey, a student-run entrepreneurship group and, as well, assisted Professor Richard McLaren with the launch of the Western Business Law Clinic. Rajah also received an Honours Philosophy degree from the University of Waterloo, where he also took a significant course load in Mathematics and Computer Science. Rajah worked for more than a decade in the information technology industry, including three years in software development and seven years as an Information Systems and Technology manager at both a major telecommunications company and at a financial services company. Rajah also received his legal training in the corporate law group at Stikeman Elliott LLP in Toronto, as well as internationally for the Technology Media and Telecom group in the Dubai office of Clyde & Co. Rajah is a Technology and Small Business Lawyer and is counsel for the Venture Law Practice Group at Cobalt Business Counsel, a corporate and securities law practice based in Toronto. Recently, Rajah has been interviewed for a Financial Post podcast and by the Globe and Mail for his work at Multiplicity, and has joined the Loan Review Committee Member for the CYBF Spin Master Innovation Fund and was asked to judge the Ivey IBK Business Plan Competition. Rajah is also on the board of directors of Sky’s the Limit charity that provides laptops to youths in need and is Canadian Responsible Leaders Chapter Head for the BMW Foundation. Rajah continues to be an active member in the start-up technology industry nationally and internationally.