FRAND and the Smallest Saleable Unit

By Joseph Kattan, Janusz Ordover & Allan Shampine –

This article discusses the intersection between the SSU rule and FRAND requirements. The FRAND concept intersects with the SSU rule, which is a patent law concept that seeks to limit patent holders’ ability to collect royalties that exceed the contributions of their patents. Although the SSU rule has its origins outside the standard-setting context, and applies to all patents, it is of particular importance in enforcing a FRAND commitment, precisely because hold-up is of particular concern in the standard setting context.