Exclusive: EU patent body to oversee tech-standard patent royalties -EU draft rule

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The European Union patent body will oversee a new process to set fair royalties on patents for technologies widely used in products like cellphones, according to a draft EU regulation that seeks to reduce litigation over royalty disputes.

Standard-essential patents cover technology that devices must include to comply with international standards like 4G, Wi-Fi and USB. Some standards entail thousands of essential patents, and their owners are required to offer licenses on fair and reasonable terms.

"The FRAND determination procedure should simplify and speed up negotiations concerning FRAND terms and reduce costs. The EUIPO should administer the procedure," said the European Commission document seen by Reuters on Tuesday. "This is necessary because disagreements about the FRAND terms are the main reason to seek recourse in courts," the document said.

 

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