RAND Royalties

Assessing RAND commitments and calculating RAND royalties that avoid patent holdup while compensating patent holders.

Our economists have a broad expertise in the economics of RAND commitments and royalties. Recent decisions have begun to structure the economic framework for assessing RAND royalties, addressing the issues of patent holdup, and royalty stacking. The determination of a RAND royalty depends on case-specific factors. Edgeworth experts assist clients in answering a range of economic questions arising in RAND litigations, including:

  • What non-infringing alternatives were available at the time of standardization?  
  • How do existing licensees affect the patent holder’s “non-discriminatory” component of its RAND obligation?
  • What should be the total royalty burden associated with the standard as a whole, how many patent holders are there and how will it affect the “stack” of royalties? 
  • Given that the economic value of patents varies widely, what methodologies account for the potentially thousands of technologies necessary to implement the standard while still allowing major innovations to receive a relatively larger share of the royalty burden? 

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