Standard essential patents and FRAND licensing in telecommunications


Slender telecommunications tower and radio waves against a blue background.

In telecommunications, the patent cannot be separated from the standard. Holders of patents declared essential have undertaken to the standardisation body to grant licences on fair, reasonable and non-discriminatory (FRAND) terms. The dispute concerns that undertaking as much as infringement.

Issues specific to the sector

Essentiality, validity and infringement are argued as in any patent case. But the outcome also depends on how the parties conducted the negotiation: the judgment of the Court of Justice of the European Union in Huawei v ZTE (16 July 2015, C-170/13) sets the conditions under which a patent holder may seek an injunction without abusing a dominant position.

The undertaking given to ETSI is governed by French law. We argue that it constitutes a stipulation for the benefit of a third party, which gives implementers a direct right and gives the French courts a natural role in defining the parties’ obligations (The FRAND undertaking, a contract under French law).

Disputes are global and run in parallel before several courts, including the Unified Patent Court. Forum, timing and the interplay with any arbitration are decisive.

How we act

Is a licence negotiation becoming contentious? Let us discuss it.

Selected matters

Telecommunications: strategic SEP and FRAND advice

Strategic advice to a telecommunications company on standard-essential patents and FRAND licensing.

Browse Dhenne Avocats’ significant matters.

Further reading and publications

Books and academic bibliography.

Frequently asked questions

Why does French law matter in FRAND negotiations?

The ETSI IPR Policy subjects the undertaking to French law. Its nature, beneficiaries and performance need to be considered alongside the royalty discussion.

Is FRAND only a question of royalty rates?

The analysis also concerns the portfolio, essentiality, products, comparable licences and the conduct of the parties.

Can negotiations be coordinated with litigation and arbitration?

Yes, depending on the rights and agreements concerned. Applicable law, the powers of the court or tribunal and the scope of the dispute must be assessed.