WIPO’s new Valuation Methods in Licensing Standard Essential Patents report, launching June 4, offers readers a practical reference on the economic valuation methods used to assess fair, reasonable and non-discriminatory (FRAND) licensing terms in the field of standard essential patents.
The new report, which sets out the principal approaches to FRAND determination and their strengths and limitations, will be presented live during a virtual roundtable on June 4, at 3.00 p.m. Geneva time.
SEP licensing: Why FRAND determination matters
Standards underpin almost everything that connects us, from video streaming to connectivity like 5G and the Internet of Things. By enabling products and services to work together, standards allow many companies to develop compatible products. This can expand markets, provide a basis for further innovation, and benefit consumers through greater choice and interoperability.
Standards are often developed by standards development organizations (SDOs), where companies suggest technical solutions for inclusion. Many of these contributions are protected by patents. When patented solutions are incorporated into a standard and their use becomes unavoidable when implementing that standard, SDO policies generally require that patentees license these “standard essential patents” (SEPs) on FRAND terms.
FRAND licensing seeks to balance two objectives: ensuring that patent holders are fairly remunerated for contributing to standardization, while enabling access to standardized technologies on fair and non-discriminatory terms.
In practice, translating the high-level undertaking to license on FRAND conditions into concrete licensing terms can be challenging. Economically sound valuation provides methods to address this. It can help parties, courts, and arbitrators identify a plausible range of fair compensation for SEP licenses.
A practical reference for a complex field
WIPO’s report titled FRAND Economics: Valuation Methods in Licensing Standard Essential Patents is intended as a practical reference for policymakers, judges and arbitrators, relevant authorities, and parties involved in SEP licensing processes.
Designed to be accessible to a wide range of stakeholders, it aims to help readers identify and understand the economic issues that affect the value and terms of a license, allowing for better informed negotiations and dispute settlement.
The new five-part report offers readers a clearer understanding of:
- the economics behind FRAND licensing;
- the principal approaches used in SEP valuation;
- the strengths and limitations of those approaches; and
- how principled valuation can support a predictable, transparent, and less costly FRAND assessment.
Launch event: virtual roundtable with report contributors
To mark the launch of the report, WIPO is hosting a virtual roundtable with its contributors. The event is open to the public and registration is free of charge.
Event details
- Date: Thursday June 4, 2026
- Time: 3.00 to 4.00 p.m. CET (Geneva time)
- Format: Virtual
The roundtable discussion offers participants an opportunity to hear directly from the report contributors on the economic principles behind FRAND determination, the practical challenges that arise in SEP licensing negotiations, and the role of valuation methodologies in supporting more informed decision-making.
The one-hour event features perspectives from experts with experience across different jurisdictions and from different sides of SEP licensing practice, reflecting the report’s aim to provide a balanced and practical reference for the global SEP community.
WIPO’s work on SEPs and FRAND
The report forms part of WIPO’s broader work on standard essential patents and its Strategy on Standard Essential Patents, which positions WIPO as a source of reliable information and a facilitator of collaboration across the SEP landscape. WIPO is committed to continuing its engagement with stakeholders to expand and strengthen tools that support the global SEP community.
Stay tuned: WIPO’s second SEP conference, a seminar on dispute settlement is coming October 12 and 13, 2026.
Questions or comments?
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