Definition
FRAND stands for fair, reasonable, and non-discriminatory, the licensing terms that holders of standard essential patents commit to offer all implementers.
Why It Matters Legally
FRAND commitments balance the leverage SEP holders have against the needs of implementers. Disputes over what royalty is fair and reasonable are a major source of global patent litigation.
Example Use Case
A standards body requires patent holders to license on FRAND terms, and a court later determines the fair royalty rate when the parties cannot agree.
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Related Terms
Standard Essential Patent, Patent Pool, Licensing, Royalty, Reasonable Royalty