INTELLECTUAL PROPERTY AND STANDARD SETTING

In information and communications technology (ICT) markets, standards often rely on proprietary technology protected by patents and cannot be implemented without access to that technology. Proprietary technology that has been declared necessary to the implementation of a standard is referred to as a standard-essential patent (SEP). A tension between standards and patents arises because patents protect the owner’s exclusionary right to exploit an innovation, while standards are intended for widespread use in the market. On the one hand, a reasonable return on research and development (R&D) investment by the patent holder is necessary to incentivise innovation