RealClearPolicy: Two Lies and the Truth About the 2021 Draft SEP Licensing Policy by Kristen Osenga
Standardized technology is everywhere – from mobile phones to smart appliances to automobiles. Industries based on standardized technology are thriving on nearly all measures of competition, including extensive innovation resulting in new products and features, lowered prices even with upgraded products, and many manufacturers vying for consumers attention and dollars. In short, businesses and consumers are benefiting from standardization.
One reason these industries are flourishing is because the ecosystem surrounding these industries are generally well balanced. Companies that participate in standards development organizations, or SDOs, and engage in research and development to develop the technology on which these standards are based are able to secure patent rights to protect their investments. These companies can then license these patents, known as standard essential patents or SEPs, and recoup some of their investments via licensing fees. In this respect, SEPs are no different than other patents.