Excessive pricing and standard-essential patents

Authored by He Jing (hejing@anjielaw.com) and Dong Xue from AnJie Law Firm

On May 22 2014, China’s National Development and Reform Commission (NDRC) announced the suspension of the investigation against Inter Digital Communications (IDC), a US wireless technology developer, as the company had submitted detailed  measures to address the regulator’s concerns. What is interesting is the differences in the IDC measures between the press release of NDRC and that of IDC. NDRC states that:

1) IDC will not charge Chinese enter- prises discriminatory and excessive patent licensing fees.

2) IDC will not bundle standard-essential patents (SEPs) with non-SEPs in the patent licence.

3) IDC will not require a Chinese manufacturer to agree to a royalty-free, reciprocal cross-licence.

4) IDC will not force Chinese enterprises to accept unreasonable licence conditions through direct legal action.

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