How standard essential patents are licensed affects competition, innovation, product compatibility, and consumer choice. When licensed on fair, reasonable, and non-discriminatory terms, everyone stands to benefit. On the other hand, when companies use the market power of a standard and standard essential patents to demand unfair, unreasonable, or discriminatory terms, consumers are harmed and fewer choices are available. Apple brings a balanced perspective to the promises and perils of standardization and outlines several core principles to promote fair, reasonable, and non-discriminatory licensing of standard essential patents, addressing transparency during negotiation, merits-based evaluation, portfolio licensing, use of a common royalty base and rate, and injunctive relief. Taken together, these principles provide a consistent framework for fair, reasonable, and non-discriminatory licensing of standard essential patents.
Source: Legal – FRAND – Apple