News: Intensity Conducts FRAND Analysis of 3G and LTE Cellular Standard Essential Patents (SEPs)

Intensity provided an economic analysis to determine whether a patent holder’s offers to license patents claimed to be essential for cellular functionality to multiple manufacturers of end-user devices were fair, reasonable, and non discriminatory (FRAND). Intensity also evaluated how a limited exclusion order and cease and desist order against the manufacturers may impact the public interest and determined a bond amount upon importation of the accused products that would be sufficient to protect the patent holder from any injury during the 60-day Presidential review period pursuant to 19 U.S.C. § 1337(j).

Intensity was engaged by a holder of patents declared as essential for 3G and LTE cellular standards regarding its offers to license the declared patents to multiple manufacturers of end-user devices. In determining if the offers were FRAND, Intensity performed an economic analysis of relevant license agreements, the aggregate royalty burden for 3G and LTE cellular standards, and the patent holder’s economic contribution to each standard. Intensity also evaluated multiple economic issues, including the impact on competition, consumers, and public health and welfare, in evaluating how a limited exclusion order may impact the public interest.

Intensity’s analysis has been provided to the U.S. International Trade Commission, which has instituted an investigation pursuant to the provisions of Section 337 of the Tariff Act of 1930 regarding the importation of the manufacturer’s accused end user products.