Defining “Reasonable” in RAND: A Bit of Common Sense

Morrison & Foerster LLP

What is RAND? It’s a simple question. Given the ubiquity of the term, one would think that the answer would be clear. After all, standard-setting organizations (“SSOs”) around the world require patent holders to declare their standard-essential patents and commit to license on RAND terms. Competition law enforcement agencies have mandated RAND licensing in remedial orders. Courts have been asked to determine whether licensing offers are consistent with RAND. Yet after more than a decade of wrangling in legal disputes, antitrust enforcement investigations, and policy debates across the globe, the definition of RAND is still, to a large degree, an open and multifaceted question.

One of the most hotly debated aspects of the question is: What is a “reasonable” royalty for a RAND-encumbered patent? The answer to this question is vital. Millions, perhaps billions, of royalty dollars ride on the answer. Moreover, whether a particular patent holder’s licensing offers and licenses are “reasonable,” and thus consistent with a RAND commitment, has implications for the ability to obtain injunctive relief, potential liability for breach of contract, and whether the patent holder’s conduct violates competition law.

Originally published in CPI Antitrust Chronicle on March 12, 2015.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:

Morrison & Foerster LLP

Morrison & Foerster LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.