Standardization changes our daily life - makes it more comfortable. Because of standardization, cellular phones or computers from different brands can communicate with each other. In other important economic fields, standardization also plays a very crucial role, from electricity plugs to railway tracks. As standardization becomes more and more important, the tension between intellectual property rights (IPR) (e.g., patent law) and competition law increases, as, for example, discussed in relation to FRAND (fair, reasonable and non-discriminatory) terms. This article focuses in the first part on the importance of standardization and regulation. After that, the FRAND commitment will be discussed. Further to the patent hold-up problem, the paper tackles issues of fairness and reasonableness of royalties before or after a technology has been implemented in a standard. Looking at the abusive behaviour in the technology markets in the third part, the paper shows that FRAND is one instrument to restore competition, if actively enforced by competition authorities.
World Competition