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Patent license | 751 comments | Create New Account
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Patent license
Authored by: Anonymous on Thursday, October 04 2012 @ 04:49 AM EDT
I think the idea that the courts are using here is that the FRAND terms require the patent-holder to negotiate a license.
Why would the patent-holder be required to negotiate a license rather than the licensee? For standard-required patents, it is close to impossible to notice that there is a patent-holder with rights.

Yet Apple thinks that it

  • is not required to notify the patent-holder of standard-required patents when making use of them, but is asking for punitive damages for non-standard-required patents
  • can sue a standard-required patent holder for breach of contract without having entered into any contractual obligations themselves.
  • Why would the patent-holder be required to negotiate a license?

    [ Reply to This | Parent | # ]

    Patent license
    Authored by: Ian Al on Thursday, October 04 2012 @ 06:16 AM EDT
    I think the idea that the courts are using here is that the FRAND terms require the patent-holder to negotiate a license.
    I don't think so. Where did the court find the FRAND terms? How do they, as a matter of law, require a patent-holder to negotiate a licence? In the case of international standards relying on patented inventions, the patent-holder has to declare their willingness to licence the patent on FRAND terms. What is the legal effect of this declaration?

    In English law (did I mention that IANAL) a shopkeeper can put a 55" LED, 3D, flat-screen, smart television in his window and display a package deal that includes ten pairs of active, 3D glasses and a free, on-site, 3 Year warranty for the price of £224.99. Under the law, it is considered an invitation to treat. The shopkeeper is not making a binding offer and is not contractually bound to supply the package for the price quoted.

    Wikipedia says this:
    Invitation to treat (or invitation to bargain in the United States) is a contract law term. It comes from the Latin phrase invitatio ad offerendum and means "inviting an offer". Or as Andrew Burrows writes, an invitation to treat is

    "an expression of willingness to negotiate. A person making an invitation to treat does not intend to be bound as soon as it is accepted by the person to whom the statement is addressed."

    Contract lawyers distinguish this from a binding offer, which can be accepted to form a contract (subject to other conditions being met). The distinction between an offer and invitation to treat is best understood through the categories that the courts create.

    Invitations to treat include the display of goods; the advertisement of a price or an auction; and an invitation for tenders (or competitive bids). There may however be statutory or complementary obligations, so consumer protection laws prohibit misleading advertising and at auctions without reserve there is always a duty to sell to the highest bona fide bidder.
    So, does an offer to licence under undefined FRAND terms, without a price quote, anywhere in the world, to anyone in the world, even reach the standards of an invitation to treat? There are unlikely to be any breaches of consumer protection laws in the US as a result of making the world-wide declaration.

    The FRAND declaration is not a contract offer because nothing is even in the store-front with a price tag. The standard does not contain a saleable product or the basis for a specific contract. Even if the declaration was considered by an American court to be an Invitation to Bargain, it is not binding on the patent-holder.

    Of course, if the patent-holder is also a foreigner... well, the Constitution and the Law only protects US citizens. [Subject to International Treaties and Agreements to which the US Government is a current signatory.]

    ---
    Regards
    Ian Al
    Software Patents: It's the disclosed functions in the patent, stupid!

    [ Reply to This | Parent | # ]

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