Standard Essential Patents (SEPs) & Competition Law: Navigating FRAND Commitments

Abstract

Standard Essential Patents (SEPs) occupy a unique intersection between intellectual property rights and competition law, as they cover technologies that are indispensable to industry standards. While SEPs are crucial for interoperability and technological advancement, their holders may obtain substantial market power, raising concerns about anti-competitive behavior. To mitigate potential abuse, SEP holders are typically required to license their patents on Fair, Reasonable, and Non-Discriminatory (FRAND) terms. However, defining FRAND obligations, resolving licensing disputes, and enforcing commitments across jurisdictions remain legally and economically complex.

This study critically examines the legal and regulatory landscape governing SEPs and FRAND commitments. It analyzes key judicial decisions and regulatory guidelines from the European Union, United States, China, and other leading jurisdictions, focusing on cases that illustrate conflicts between patent enforcement and competition law principles. Special attention is given to challenges such as hold-up, hold-out, excessive royalties, injunction requests, and cross-licensing arrangements.

Through doctrinal and comparative analysis, the paper argues that effective navigation of SEPs under FRAND obligations requires harmonized legal frameworks, transparent licensing practices, and a balance between incentivizing innovation and preventing anti-competitive conduct. The study contributes to ongoing debates on aligning intellectual property law with competition policy in the context of emerging technologies and global standards-setting processes.