A Study on Royalty Calculation to Correct Royalty Stacking and Holdup/Holdout of Standard Essential Patent

摘要

The use of standard essential patent(SEP)s is rapidly increasing along with IP innovation in the fourth industrial revolution. However, many problems such as royalty stacking and holdup/holdout related to implementation fees have arisen with the recent remarkable development of information and communication technology. SEP holders want to receive a higher royalty rate(holdup) and implementers want to pay less(holdout) rate, based on FRAND commitments. If negotiations on the royalty rate are not smooth, the rate is determined through court litigation. This requires a reliable calculation method for SEP valuation. In this study, it is proposed that the FRAND royalty rate estimated by top-down approach be used in combination with the comparable license approach to complement it.