The Content and Legal Effects of FRAND Contract

Articles in Press

Document Type : Original Article

Authors

1 PhD in Private Law, Associate Professor, Faculty of Law and Political Science, University of Tehran, Tehran, Iran.

2 Graduated from the Department of International Law, Shahid Beheshti University, Tehran, Iran. Bachelor's Degree, Law, University of Tehran, Tehran, Iran.

10.48300/jlr.2022.321332.1900

Abstract

FRAND contract is concluded between Standard Essential Patent (SEP) holders and Standard Setting Organizations (SSOs). It imposes on – without providing a precise meaning - the SEP holders a duty to offer to license their SEPs on fair, reasonable and non-discrimination terms to standard implementers. Future standard implementers are FRAND contract's third-party beneficiaries. This contract doesn't also include any clauses in regard of it's Legal effects and termination . The ambiguity in meaning of FRAND terms causes challenges between SEP holders and standard implementer in negotiations over licensing of SEPs. The standard implementer may sue SEP holder who fails to perform one's duty arising from FRAND contract.Courts use several methods in order to calculate the royalty rate around the world. This archive-based research provides the precise definition of FRAND contract's content by studing U.S. contract law. It also analyzed it's legal effects and termination.It should be noted that another independent article analyzed the nature and rationale of FRAND contract.

Keywords

Journal of Legal Research

Articles in Press, Accepted Manuscript
Available Online from 27 April 2022

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