Licensing Laws And Antitrust Concerns In India

Conventus Law – What is the distinction between “licensing on the end value of device” and “licensing on the smallest component value”?

LexOrbis – When a patent has claims that can be infringed at different levels of a device, the issue of “licensing on the end value of device” or “licensing on the smallest component value” come into picture.

In such cases, “Licensing on the end value of device” is a practice adopted by patentees to calculate royalty rate for their patent on basis of value of end product that infringes the patent. For example: the royalty rate for a patent for establishing communication is infringed by sale of a mobile phone will be calculated on the basis of the sale price of the particular mobile phone.

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