New EPO Study Examines How FRAND Licensing Rates Are Determined

The European Patent Office (EPO) has published a new study examining how fair, reasonable and non-discriminatory (FRAND) licensing rates are determined for standard essential patents (SEPs), offering valuable insights into one of the most important issues at the intersection of intellectual property, standardisation, and emerging technologies.

Based on an analysis of 65 major court decisions from seven jurisdictions between 2013 and 2025, the study identifies common approaches used by courts when determining FRAND licensing terms. While legal frameworks differ across countries, the report finds a shared objective: ensuring a fair balance between rewarding patent holders for their innovations and enabling broad access to technologies incorporated into international standards.

The study also shows that comparable-licence analysis has become the preferred method for determining FRAND rates, while top-down approaches are increasingly used as a supporting tool. Both methods rely heavily on patent data and present practical challenges in implementation.

The findings are intended to support licensing negotiations, as well as the work of judges, mediators, and arbitrators involved in SEP disputes. The publication forms part of the EPO Observatory’s broader programme on patents and standards, which aims to improve transparency and understanding of the relationship between standardisation, licensing, and technological innovation.

Full study "Methodologies for FRAND determination: evidence from global case law"