Licensing Seps—Round Three

Patents that are essential to a standard must be licensed in a fair, reasonable and non-discriminatory manner. If we understand the English and legal meaning of these words, there is no wiggle room for so-called super FRAND rates nor for charging a premium for a standard essential patent (SEP). We should be able to ask three simple questions and derive a FRAND rate.Is it fair?—is it impartial, honest, free from favoritism, prejudice and self-interest?Is it reasonable?—is it just, moderate, fit and appropriate for the end in view?Is it non-discriminatory?—is it free from conferring privileges on an arbitrary class?1For some licensors seeking to provide wiggle room, these questions are now phrased as follows: Why should we treat all segments of a supply chain in the same way? Why not charge 15 times more for a WiFi chipset in a smart car?2Why not treat smart cars differently than smartphones?