The 25% Rule Revisited And A New Investment-Based Method For Determining FRAND Licensing Royalties

Ove Granstrand and Marcus Holgersson

Ove Granstrand

Chalmers Univ. of Technology

Marcus Holgersson

Chalmers Univ. of Technology

This paper starts with briefly discussing the 25% rule and the argumentation for and against it. The paper continues with developing a new investment-based method for determining FRAND licensing royalties, a method not only applicable to one-to-one bilateral licensing deals but also to multilateral deals with multiple license sellers and multiple license buyers. The paper ends with discussing limitations and generalizations, opening up for further research.

Read the Full Article:

Full articles are available only to LESI Members. Please login to view the PDF of this Les Nouvelles Article.

Not an LESI member? Find out how to join your regional LES society and gain access to all that your LES society and LESI has to offer.