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Intellectual PropertyPatent

Standard-Essential Patents and FRAND Licensing in 5G and IoT

As billions of devices connect through standardized protocols, disputes over standard-essential patents (SEPs) and fair, reasonable, and non-discriminatory (FRAND) licensing terms have hardened into a multi-jurisdictional war fought across four continents and three branches of government. This article explains, in plain language, what an SEP is and why it confers unusual power, how standard-setting organizations such as ETSI and the IEEE built the FRAND bargain into their intellectual-property policies, and the three rival methodologies courts use to set royalties. It works through the U.S. antitrust dimension that newcomers miss entirely—Rambus, Broadcom v. Qualcomm, N-Data, and the FTC's failed monopolization case against Qualcomm—alongside the contract framework born in Microsoft v. Motorola and the European competition framework of Huawei v. ZTE. It then traces the dramatic 2024-2026 developments: the UK's new interim-license doctrine, China's global rate-setting and the WTO's TRIPS finding against its anti-suit injunctions, the Unified Patent Court's first FRAND ruling, the collapse of the EU SEP Regulation, and the component-versus-device licensing fight roiling connected cars and IoT. It closes with a practical, phase-by-phase negotiation framework and an FAQ. The goal is for a judge, a licensing executive, and a curious newcomer all to come away genuinely fluent.

Casey Scott McKayJune 30, 202554 min read