On the “non-discrimination” aspect of FRAND licensing:A response to the Indian Competition Commission's recent orders
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RAVI aNSHUMAN V. IIMB Management ReviewSummary: The Indian Competition Commission has recently challenged Ericsson's practice of licensing its standards-essential patents (SEPs), relating to cellular standards, for percentage-based royalties based on the selling prices of the end-user licensed products. Ericsson had committed to the relevant standards-development organisation that it would license its SEPs on “fair, reasonable and non-discriminatory” (“FRAND”) terms. The Commission contends that such royalties are “prima facie discriminatory” in violation of the Competition Act, in the (novel) sense that different products selling for different prices pay different per-unit royalties. We analyse the broader implications of the Commission's reasoning, concerned that if adopted, the Commission's reasoning would disrupt common industry licensing practices.
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| Vol 30/ BV-331 Journal of accounting and finance - Vol 30 | Vol 30/ BV-397 Finance India Vol 30(XXX) - No. 1 and 2 | Vol 30/ BV-398 Finance India Vol 30(XXX) - (No. 3 and 4) | Vol 30, Issue 1/ 5559029JA1 On the “non-discrimination” aspect of FRAND licensing:A response to the Indian Competition Commission's recent orders | Vol 30, Issue 1/ 5559029JA2 FRAND in India: Emerging developments | Vol 30, Issue 1/ 5559029JA3 Leveraging affordable innovation to tackle India's healthcare challenge | Vol 30, Issue 1/ 5559029JA4 Innovation and intellectual property rights law—an overview of the Indian law |
The Indian Competition Commission has recently challenged Ericsson's practice of licensing its standards-essential patents (SEPs), relating to cellular standards, for percentage-based royalties based on the selling prices of the end-user licensed products. Ericsson had committed to the relevant standards-development organisation that it would license its SEPs on “fair, reasonable and non-discriminatory” (“FRAND”) terms. The Commission contends that such royalties are “prima facie discriminatory” in violation of the Competition Act, in the (novel) sense that different products selling for different prices pay different per-unit royalties. We analyse the broader implications of the Commission's reasoning, concerned that if adopted, the Commission's reasoning would disrupt common industry licensing practices.
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