Patent Holdup | Practical Law

Patent Holdup | Practical Law

Patent Holdup

Patent Holdup

Practical Law Glossary Item 3-557-1856 (Approx. 3 pages)

Glossary

Patent Holdup

The opportunistic licensing of a standard-essential patent (SEP) where the SEP owner seeks increased licensing fees because the patent is essential to the standard. SEP owners gain increased market power when their patented technologies are incorporated into an industry standard because it can be difficult or even impossible to change a standard once adopted. To deter patent holdup, many standard-setting organizations (SSOs) require participants to:
  • Disclose their relevant patent rights to the SSO during the standard's development.
  • License any SEPs on fair, reasonable, and non-discriminatory terms.