We study several interconnected problems that arise under the current U.S. patent system when a patent covers one component or feature of a complex product. This situation is common in the information technology sector of the economy. Our analysis applies to cases involving reasonable royalties but not lost profits. First, we show using bargaining theory that the threat to obtain a permanent in...

The proliferation of international jurisdictional conflicts and competing “anti-suit injunctions” in litigation over the licensing standards-essential patents has raised concerns among policy makers United States, Europe China. This article suggests that national courts temporarily “stand down” from assessing global “fair, reasonable nondiscriminatory” (FRAND) royalty rates while bodies develop...