Not long ago, legal work on standard essential patents (SEPs) was largely limited to the telecommunications industry. With the expansion of communication software and protocols into nearly every industry today, however, having knowledge of the issues relevant to SEPs and the associated obligations of SEP holders to license their SEPs on fair, reasonable, and nondiscriminatory (FRAND) terms is something with which more and more lawyers should familiarize themselves. If you have clients whose products or services even touch the relatively recent development of today’s Internet of Things (IoT), please read on.

By way of background, SEPs relate to a particular industry standard (e.g., cellular or wireless standards). The technology claimed in SEPs is usually required to practice that particular industry standard. They are subject to special rules promulgated by a standard setting organization (SSO), and are generally required to be licensed on FRAND terms.