WIPO’s new Valuation Methods in Licensing Standard Essential Patents report, launching June 4, offers readers a practical reference on the complex 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. However, participating in a standardized technology field can be incredibly complex because a substantial part of these technologies is protected by standard essential patents (SEPs) that must be licensed for use in standard-compliant devices and services. These patents are obtained by companies that contribute to the development of the standard by their innovative solutions.
When licensing terms are FRAND, standards can support large or even global markets to the benefit of consumers, improve functionality and provide a platform for complementary innovation. At the same time, once patented inventions are embedded in widely adopted standards, both SEP holders and implementers face challenges in licensing negotiations.
Economically sound valuation addresses these challenges by providing methods to translate the undertaking of FRAND licensing into concrete, practical terms. This helps parties, courts, and arbitrators identify a plausible range of fair compensation for an SEP license and assess the reasonableness of offers and counteroffers.
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 technically complex SEP licensing processes.
Designed to be accessible to such 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 study offers readers a clearer understanding of:
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the economic role of standards and why SEP licensing negotiations are prone to frictions;
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how the market-based approach of comparable licenses is used in FRAND assessment;
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how value-based approaches, including bottom-up and top-down frameworks, can be applied and used as cross-checks;
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how principled valuation can support a more 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 the study’s 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
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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 verified data sources 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.
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