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Busting some myths related to SEPs and FRAND

SEPs and FRAND Aug 29, 2016 There are comments from several Standard Essential Patent (SEP) owners that there is no basis for the claim from potential licensees that the royalty burden is too high as the Indian mobile phone market keeps ever expanding both in terms of value and size, and at the same time the value of devices keeps going down. The Indian brands surely cannot be foolish to be incurring losses as they are in business in this vast market. These statements are flawed as they mistake / or conflate cause with effect and confuse one factor as being the only factor. As has been recorded elsewhere in different studies (BSNL, FICCI, etc.), the phenomenal growth in the Indian telecom industry was predominantly aided by the meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to enter the market and to cater to the growing demand. Historically, the Indian handset brands grew because they catered to a specific demand supply gap. At a point in the last decade (2010 onwards), traders who realized that mobile phones were cheap in China, could be sold in India. India did not have, and still has no manufacturing capability to produce an entire phone domestically. What these traders did was to take advantage of the arbitrage. The phones were branded according to the traders and we have several home grown brands attesting to the effect. The Indian brands simply imported the devices lock, stock, and barrel: devices, accessories, box packaging, with proper literature came in imported. It would be worth mentioning here that there is no technological input being made by the Indian traders with the exception of stating the final bill of material ( DISCLAIMER: The views expressed are solely of the author and does not necessarily subscribe to it. shall not be responsible for any damage caused to any person/organisation directly or indirectly.

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