Determination of FRAND Licensing Terms for Standard Essential Patents

Determination of FRAND Licensing Terms for Standard Essential Patents

Deep industry expertise at the intersection of finance and intellectual property.

Stout’s experts have deep experience performing complex standard essential patent (SEP) proportional share analysis and assessing the economics of Fair, Reasonable, and Non-Discriminatory (FRAND)-encumbered SEPs. Stout’s experts regularly consider and implement a variety of methodologies to determine FRAND licensing terms that are consistent with various court decisions and commonly recognized valuation theory. Such methodologies include, but are not limited to, both “top-down” and “bottom-up” approaches relying on a variety of economic concepts, including hypothetical negotiations, incremental value, comparable transactions, next best alternatives, and aggregate royalty burden, among others.

Stout’s experts have extensive experience determining FRAND licensing terms for SEPs for a variety of purposes, including:

  • Damages expert testimony related to FRAND-encumbered SEPs
  • Consulting expert services in connection with mediation prior to formal litigation
  • Determination of aggregate royalty rates for particular standards
  • SEP exposure risk mitigation
  • Strategic decision making
  • Valuation for purposes of financial reporting
  • Assessment and selection of monetization strategies
  • Negotiation assistance (license or sale)
  • Use of SEPs as collateral for debt financing

Additionally, our experts have determined FRAND licensing terms for a variety of technical standards, some of which include:

  • Wi-Fi (802.11n, 802.11ac, 802.11ac Wave 2, 802.11ax)
  • Cellular standards (2G, 3G, 4G/LTE, LTE-Advance, 5G)
  • Video (H.264/AVC, H.265/HEVC, H.266/VVC)
  • DSL/Broadband (MOCA, ADSL2/2+, VDSL2, G.Bond, G.Vector, G.inp)