Re: Licensing obligations... "FRAND".. This Acromyn is important to understand.
in response to
by
posted on
Oct 10, 2012 11:58AM
The Wiki link is an easily understood explaination of the concept.
http://en.wikipedia.org/wiki/Reasonable_and_non-discriminatory_licensing
Many posters here write that our Patents are so innovative that manufacturers could not have functioning finished products without incorporating our technology, and because of that, we can demand some outrageous amount from them, or stop their product sales alltogether if they do not agree.
The Industry practice is FRAND or RAND, and even if a company admits to Infringment, it's ultimately just a matter of how much they should "reasonably" pay for a license; because we can't really just deny them one if they don't pay what would be considered a ridiculous License/Royalty based on our past licensing.
I have written in previous posts that it is here that our history of licensing the previous 100 Licensees will come into play. I believe it is here that the seemingly low rates we have accepted from others will be used against us to keep licensing fees in the same per infringment application ballpark. My calculations are that we receive just about 1 cent per single use application; I think we'll have difficulty getting anywhere near 3-5 times that amount.