Considering Whether Ex Ante Joint Negotiations within Standard Setting Are “Reasonably Necessary”

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Anne Layne-Farrar, May 06, 2008

In the ongoing debate over intellectual property (IP) within standard setting, the issue of patent holdup has loomed large. Under holdup, a firm that has a patented technology which is included in a standard can use the fact that negotiating a new standard around another technology may be difficult, time-consuming, and expensive. In this case, the patent holder may be able to extort more in licensing fees than its patent is worth, or in other words, may be able to “holdup” the licensee by chargi…

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