In a recent article written for GRUR Patent, CRA’s John Hayes analyzes injunctions against the sale of products that support standards. Such injunctions can create economic pressure for manufacturers to accept excessive royalties, or other non-FRAND license terms, rather than face market exclusion of their standard-supporting products.
The authors conducted three case studies of the costs a manufacturer may face when an injunction is issued and compared those costs to the license terms sought by the patent owner. In each case, the estimated cost of the injunction greatly exceeded the offered terms. The authors also reported data showing there were at least 171 litigation matters worldwide involving SEPs in which an injunction was requested between the years 2010 and 2023. The analysis highlighted the significant role that injunctions play in pressuring SEP licensees to accept license terms they do not believe are FRAND.
Click here to read more about Injunctions in litigation involving SEPs.
