The Value of Standard Essential Patents and the Level of Licensing

Abstract

This paper argues that the value of standard essential patents (SEPs) should be independent of the level of licensing in the value chain. We further argue the value of enabling technologies, such as SEPs, is best determined in relation to the value it produces to the consumer or end-user, regardless of the licensing level. Finally, we discuss legal, economic, and organizational factors that can guide market actors to determine the optimal level of licensing through private ordering.