Back to glossary

FRAND licence

Definition : FRAND licence

The FRAND license (“Fair, Reasonable And Non Discriminatory”) constitutes an intellectual property contract that must be offered by the holder of a patent essential for implementing a technological standard (« BEN » ou en anglais « SEP » pour Standard-essential Patent) déclaré comme tel auprès d’un organisme de normalisation. Les brevetés en faisant enregistrer leur technologie comme essentielle, s’engagent ainsi à rendre celle-ci accessible via la conclusion de contrat de licences « raisonnables et non discriminatoires » avec les opérateurs économiques qui en feraient la demande. Lorsqu’une entreprise détient des brevets essentiels à la mise en œuvre d’une norme technologique, elle peut être tenue de les accorder sous licence à des tiers, conformément aux principes FRAND. Ces principes visent à garantir que les brevets ne sont pas utilisés de manière abusive pour limiter la concurrence ou pour obtenir un avantage injuste sur les concurrents. Une licence FRAND doit être équitable, raisonnable et non discriminatoire. Cela signifie que les termes de la licence doivent être objectifs, transparents et appliqués de manière non discriminatoire à tous les demandeurs. Le titulaire de brevet doit également accorder une licence à un prix raisonnable et proportionné aux avantages économiques que la technologie apporte à l’utilisateur. Les licences FRAND sont courantes dans les industries qui adoptent des normes techniques, telles que les télécommunications et l’informatique. Les entreprises qui respectent les principes FRAND peuvent bénéficier d’un accès à des brevets essentiels pour mettre en œuvre des normes technologiques, ce qui peut favoriser l’innovation et la concurrence dans ces secteurs. Bien que les licences FRAND visent à garantir une concurrence équitable et à promouvoir l’innovation, il existe plusieurs problèmes et controverses liés à leur utilisation. Voici quelques-uns des problèmes que posent les licences FRAND :

  1. Definition of "reasonable": It can be challenging to determine what is "reasonable" regarding FRAND licensing fees because there are no clear and uniform criteria for establishing the price of a license. Patent holders may have differing opinions on the value of their patents and the licensing terms, which can lead to legal disputes.
  2. Questions about essentiality: The declaration of a patent's essentiality to a standard with an organization is unilateral and not subject to verification by the organization, which can lead to unjustified declarations.
  3. Patentability Issues: Patents that are essential to a technological standard must be of high quality to avoid conflicts over their validity. This can be challenging to ensure because FRAND standards apply to many emerging technologies that may be subject to patentability questions.
  4. Workaround Strategies: Companies may attempt to circumvent essential patents by developing alternative technologies that do not rely on these patents. This can undermine innovation and the adoption of technological standards.
  5. Non-compliance with FRAND principles There are concerns about the non-compliance with FRAND principles by some patent-holding companies, particularly in terms of transparency and non-discriminatory application of licence conditions.
  6. High costs The costs of implementing patented technologies can be high, which can lead to additional costs for end-users, particularly in the fields of technology and telecommunications.
  7. Complexity of Licence Agreements Licensing agreements can be complex and difficult to negotiate, especially when multiple patent holders are involved. This can slow down the adoption of technological standards and hinder innovation.
  8. Legal costs: Legal disputes over FRAND licenses can be costly and protracted, which can discourage companies from adopting technological standards.

Several solutions are being considered to address the issues related to FRAND licenses: :

  1. Transparency Greater transparency in FRAND licensing negotiation and management processes can help reduce legal costs and improve trust between patent holders and end-users.
  2. Standardization: Further standardization of patent evaluation methods and license fees can facilitate negotiations and reduce conflicts.
  3. Arbitration: Resorting to independent arbitration or mediation to settle FRAND licensing disputes can facilitate faster resolution and reduce litigation costs.
  4. Adherence to FRAND principles: it is important that patent-holding companies respect FRAND principles and apply fair, reasonable and non-discriminatory licensing conditions.
  5. Revision of laws and regulations: governments can revise patent laws and regulations to facilitate the resolution of FRAND licensing disputes and promote fair competition.
  6. Collaboration : companies can work together to reduce costs and facilitate the adoption of technological standards.

En fin de compte, une résolution efficace des problèmes liés aux licences FRAND dépendra d’une collaboration et d’un engagement de la part de toutes les parties impliquées, y compris les titulaires de brevets, les utilisateurs finaux, les gouvernements et les organismes de normalisation. Il y a eu plusieurs contentieux mondiaux relatifs aux licences FRAND ces dernières années. Voici quelques-uns des principaux :

  1. Apple vs. Qualcomm.This is one of the most famous disputes. In 2017, Qualcomm accused Apple of not respecting the FRAND licensing conditions for patents on mobile communication technologies. Apple retaliated by accusing Qualcomm of excessive patent fees and violating antitrust laws. The two companies finally reached an agreement in 2019.
  2. Huawei vs. InterDigital.In 2013, Huawei accused InterDigital of not respecting FRAND principles for patents on mobile phone technology. The conflict was finally resolved by a licensing agreement between the two parties.
  3. Samsung vs. Ericsson.In 2012, Samsung accused Ericsson of violating FRAND principles for patents on mobile communication technology. The two companies finally reached a licensing agreement in 2014.
  4. Nokia vs Apple.In 2011, Nokia accused Apple of not respecting FRAND principles for patents on mobile phone technology. The two companies finally reached a licensing agreement in 2017.
  5. FTC vs Qualcomm.In 2017, the US Federal Trade Commission (FTC) accused Qualcomm of excessive pricing for its patents on mobile communication technologies and of violating antitrust laws. Qualcomm countered by claiming that the FTC had misinterpreted the FRAND principles. The dispute was resolved in 2019 when Qualcomm agreed to change some of its business practices.
  6. Unwired Planet vs Huawei.In 2017, Unwired Planet accused Huawei of not respecting FRAND principles for patents on mobile communication technologies. The conflict was finally resolved by a licensing agreement between the two parties.

These disputes show that FRAND licensing and patent issues are complex and can lead to protracted legal disputes. It is important that the parties involved work together to find fair and reasonable solutions for the use of patents within the framework of technological standards. In FRAND licensing disputes, a lawyer can play several roles, including: :

  1. Advice: the lawyer can advise his client on the legal aspects of the FRAND license, including FRAND principles and applicable legal provisions.
  2. Negotiation: the lawyer can help negotiate the terms of the FRAND license with the other party. He can also help develop negotiation strategies and evaluate offers made by the other party.
  3. Defense: if the dispute proceeds to court, the attorney can defend the interests of his client in court and before regulatory authorities.
  4. Patent expert: the attorney can help assess the validity of the patents in question and whether the proposed tariffs are FRAND compliant.
  5. Mediation if the parties are willing to resolve the dispute out of court, the attorney can act as a mediator to facilitate negotiations.

Overall, the role of a lawyer in FRAND licensing litigation is to assist their client through all stages of the process, from initial negotiations to final resolution of the dispute. An experienced lawyer can help their client navigate a complex area and reach a solution that is fair and equitable for all parties involved.

Un enjeu FRAND concret ? Découvrez notre pratique dédiée : avocat FRAND & brevets essentiels (SEP).