standard essential patent


India being a major economy now Standard Essential Patents (SEPs) There is a greater need than ever to investigate the potentially unfair licensing practices of proprietary technology companies and the Government of India To regulate SEPs Measures should be taken.

related facts

  • The European Parliament has already implemented a set of such measures to regulate SEPs.
  • The Delhi High Court recently delivered its verdict on one of the initial suits filed by Ericsson against Lava International.

Standard Essential Patents (SEPs)

  • One A patent that protects a technology and defines the standards to be followed by technologies in that field is called a standard essential patent., They are patents that cover technologies that are adopted as standards by the industry.
  • Use
    • Use of SEPs Its highly standardized nature in the telecommunication sector Driven by the need for interoperability between viewing and communication devices, it is widely used.
    • Example: The operation of 3G (UMTS), 4G (LTE), 5G and WiFi networks rely on several patented technologies.
    • Other Industries: As Consumer Electronics, Automotive Industry and Power Grid Industry and Social Interconnections Such communication standards are also necessary for the development of
  • Who sets the standards?
    • process of setting standards in technology sector Regulated by 'standards setting organizations' (SSOs) Is performed.
      • Standard-setting organizations (SSOs) either government, semi-government or independently governed industries It is a private body of associations.
      • SSOs Standards setting, development, coordination, interpretation and maintenance We do. Such standards allow industry partners to collaborate on a single technical solution.
    • Competition concerns and FRAND conditions: of standard essential patents (SEPs) on fair, reasonable and non-discriminatory (FRAND) terms Licensing is the foundation of the standards development process.
      • Objective: This is to promote the application of the standard and avoid any competition concerns so that the benefits of such patents reach the market at large and to prevent patent holders of such SEPs from abusing their dominant position.
      • As SEP An obligation for SSOs to adopt FRAND conditions before accepting a particular technology Is. Thus, this patent right is not absolute and Here the owner of SEPs is obliged to license its patented technology, which sets a standard for the industry And such license must be granted on FRAND terms.

Competition Commission of India

  • this in india The main national competition regulator is the Competition Act, 2002. There is a statutory body responsible for implementing.
  • Nodal Ministry: Ministry of Corporate Affairs
  • Organ: Competition Commission of India and Competition Appellate Tribunal Has been established.
  • Membership: Competition Commission of India now with a Chairman and six members Fully functional.
  • Objective: this act Prohibits anti-competitive agreements, abuse of dominant position by enterprises and combinations (acquisitions, gaining control) which causes or is likely to cause a material adverse effect on competition within India.

Judicial view regarding SEP in India

  • Micromax Informatics Ltd v Telefonaktiebolaget LM Ericsson 2013:
    • The Competition Commission of India initiated an investigation into Micromax's complaint against Ericsson on the grounds that Ericsson abused its dominant position in the market by charging excessive royalties for the use of its SEPs, Due to which the Competition Act 2002 was violated.
    • Ericsson challenged the CCI order in the Delhi High Court against CCI's power to investigate the case, stating that The power to cure patent abuse in the Patent Act rests only with the Patent Office. is near.
    • The issue is currently sub judice in the Supreme Court on CCI's appeal against the Delhi High Court judgment delivered against CCI on July 2023.
  • Judicial activism of Delhi High Court
    • Delhi High Court by cellular phone manufacturers by Ericsson and other SEP owners against SEP violations Hearing the case filed.
      • While the infringement cases are being heard Competition law issues remain unresolved and sub judice Are.
      • Interim Deposit Order: the court has The SEP has given owners an interim measure, in which manufacturers, many of them Indian companiesunder inherent powers to judge in the Court, to continue manufacturing during the pendency of the suit to “deposit” money Needed.
  • Effects of judicial activism
    • Impacting 'Ease of Doing Business': The Indian judiciary's delayed response to investigating potentially unfair licensing practices of SEP owners is leading to prolonged litigation and absence of regulatory oversight.
    • financial burden: The order of the Delhi High Court places a financial burden on the manufacturers and freezes their working capital and weakens the rights of the defendants.
    • Disruption in Manufacturing Sector: This is negatively impacting government initiatives to attract investment in the manufacturing sector, hampering India's progress towards becoming a manufacturing hub.

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