By Conde, Felix; Li, Lanhua; Huang, Can

Standards are an essential part of our society, and generate broad-ranging benefits. This chapter discusses the legal and economic literature on standard setting organizations (SSOs), standard essential patents (SEPs) and fair, reasonable and nondiscriminatory (FRAND) terms. It presents the literature review in two sections. First, it introduces relevant SSOs and their policies, and firms’ participation in the standardization activities. Second, it summarizes the literature on SEPs and FRAND terms, regarding the economic returns of SEPs, the essentiality of SEPs, licensing practices based on FRAND terms, and royalty calculation methods.

This book section is published in SEPs, SSOs and FRAND--­Asian and Global Perspectives on Fostering Innovation in Interconnectivity, Routledge, p62-85.