Working Paper: CEPR ID: DP14297
Authors: Henrik Horn
Abstract: A sizeable literature analyzes the appropriate interpretation of FRAND commitments for standard-essential patents. With few exceptions, the literature disregards international dimensions, despite the fact that most standards are used in international markets. This paper uses a simple economic setting to assess pros and cons of the main jurisdictional bases in international law the Territoriality and Nationality Principles when national regulatory authorities have conflicting preferences regarding the interpretation of FRAND commitments. The paper identifies situations where the bases can implement efficient outcomes, and where they fail. The paper also shows how non-discrimination obligations might improve upon the outcomes.
Keywords: standard-essential patents; international jurisdiction; default rules
JEL Codes: F15; K21; K33; L40; O38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| territoriality principle (H13) | lenient enforcement of FRAND commitments for domestically owned SEPs (L49) |
| territoriality principle (H13) | strict enforcement of FRAND commitments for foreign-owned SEPs (L49) |
| nationality principle (F52) | lenient enforcement of FRAND commitments for both domestic and foreign SEPs (L49) |
| jurisdiction type (K29) | efficiency of outcomes (D61) |