Technical standards help to drive the modern global economy. New standards directed to the so called “Internet of Things” (IoT), the “5G” suite of standards, and other next generation standardised technologies have become essential to enabling interoperability across a variety of critical industries worldwide.Standard development organizations (SDOs) are often responsible for the institution of standardised technologies through an open and consensus-based process where industry participants and other stakeholders collaborate to develop agreed upon technical specifications. While there are hundreds of significant SDOs, a few prominent Indian SDOs include the Telecommunications Standards Development Society, India (TSDSI) and the Bureau of Indian Standards (BIS).India is one of the world’s largest growing economies in the world, and a driver of technology innovation across important sectors. Reliant on critical innovation and competition, India’s economy is greatly influenced by the ability for its citizens to gain access to internationally agreed upon technical standards through equitable and predictable SEP licensing practices. Patents reward innovation, and it is important that SDOs have the ability to incorporate innovative new technologies. The challenge is to guard against potential abuse that produces a lock-in effect, when competitors select patented technology for standardisation thereby creating an inability to design around such technology.To mitigate potential anticompetitive harms, such a patent ‘hold-up’, and preserve competition, SDOs commonly adopt patent policies requiring the licencing of SEPs on specified fair, reasonable and non-discriminatory (FRAND) terms, and in exchange, the SEP holder enjoys royalties from a wider pool of market participants who require a licence from the SEP holder in order to access the relevant technical standard. The FRAND commitment – provided it is upheld – adequately addresses the interests of all SDO participants. Still, a minority of SEP holders commonly exploit ambiguities in the FRAND commitment or revoke their FRAND commitment altogether. As the Indian economy expands, the need for the Indian government to approach the encroaching and apparent discourse between SEPs and FRAND will grow. While many SDOs fail to provide clear and coherent definitions of FRAND within their policies, SEP licencing has a long history that has unveiled foundational principles underlying the FRAND commitment to ensure the system is competitive and beneficial to businesses and consumers.This paper recommends that the best course of action for the Indian government to facilitate a pro-competitive SEP licensing ecosystem for both experienced and inexperienced SEP negotiators is to shape new law and policy through a comprehensive and whole-of- government approach. To support its recommendations, this paper conducts an analysis of technical standards, case law, and important regulations and policies that influence the Indian and International SEP landscape as a justification for why this framework will alleviate current and prevent future SEP licensing abuse in India. Ultimately, this paper will provide an evidence-backed proposal for necessary policy changes in India that will create a competitive and innovative IoT economy and demonstrate India’s global leadership in pro-innovation policies
