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26 July 2018

FRAND wars 2.0 on the horizon — How IoT-connected companies can minimize risk and seize the upside of disruption by incorporating standard-essential patents in their devices

We are on the cusp of a transformational era where a range of internet of things (IoT) devices could connect vehicles, buildings, appliances, wearables and more. IoT devices will likely incorporate existing and future standards (e.g., GSM, 3G, 5G) to facilitate interoperability, and these standards are based on patented technologies. A patent that protects technology essential to a standard is called a SEP. Businesses in the IoT ecosystem should be cognizant that the determination of fair, reasonable and nondiscriminatory (FRAND) terms for the licensing of SEPs has led to several high-profile disputes in the telecommunications sector — FRAND wars 1.0. With the incorporation of SEPs into the IoT ecosystem, the confusion will likely spread outside the telecommunications sector, leading to FRAND wars 2.0. EY explains.

Document ID: 2018-5909

 
 

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