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Editor-in-Chief, Anatole Krattiger
FRAND (Fair, Reasonable, Non-Discriminatory Terms) from a business perspective
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Timo Ruikka, Strategy Advisor, IPR Intellectual Property, Nokia Corporation
Run Time: 28 minutes
LES International: Licensing in Emerging Economies, Makati City, Philippines
Date: 7-10 June 2009
Ruikka reviews FRAND (Fair, Reasonable, Non-Discriminatory Terms) licensing aspects from a business perspective. He describes the problems in detail, provides the contract context for requiring and giving FRAND undertakings, and provides one perspective for evaluating investment compatibility (the 25 per cent "rule"). He concludes with a thoughtful discussion on FRAND implementation, stipulating that essential patent royalty sought should be expressed in relation to a stated aggregate patent cost, the acid test (viz. 25 per cent rule), and that the proportion sought should be justified from that aggregate, quantitative and qualitative argument.