The Use and Threat of Injunctions in the Rand Context

James D. Ratliff and Daniel L. Rubinfeld, Journal of Competition Law and Economics, January 2013, pp. 1-22.

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We model a dispute between the owner of a standard-essential patent and implementer of the standard over which the patentee’s license offer is reasonable and nondiscriminatory (RAND). An injunction is not rule out, yet that threat does not lead to holdup. A key element is that the implementer always has as a last-resortthe ability to accept license terms that are either certified by a court as RAND or mutually agreed upon by the patentee and implementer.

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