Definition
A standard essential patent (SEP) is a patent covering technology that is unavoidable when implementing an industry standard, such as a wireless communication protocol.
Why It Matters Legally
SEPs carry special licensing obligations, often requiring fair and reasonable terms, because their holders have leverage over everyone using the standard. Disputes over SEP licensing are frequent and high-value.
Example Use Case
A company holding a patent essential to a 5G standard must license it on fair terms to all device makers that implement the standard.
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