Under international competition guidelines, any technology manufacturer that licenses a standard-essential patent (SEP) on fair, reasonable, and non-discriminatory (FRAND) terms must submit to binding dispute arbitration if royalty negotiations with an implementer reach an impasse. A technology manufacturer is legally permitted to seek an injunctive sales ban against a competitor only if that competitor has formally refused to participate in good-faith royalty negotiations. Furthermore, no technology manufacturer that is required to submit to binding dispute arbitration is legally permitted to seek an injunctive sales ban against any competitor that has agreed to abide by the arbitrator's royalty determination. VeloCom is a telecommunications manufacturer that licenses its standard-essential data compression patent on FRAND terms, and its royalty negotiations with Novis have reached an impasse. Novis has formally agreed to abide by any royalty determination made by an official arbitration panel.
If the statements above are true, which one of the following must be true on the basis of them?
- AIf Novis had formally refused to participate in good-faith royalty negotiations, VeloCom would have been legally permitted to obtain an injunctive sales ban against Novis.
- BAny technology manufacturer that licenses patents on FRAND terms is prohibited from seeking an injunctive sales ban against all competitors under all circumstances.
- VeloCom is not legally permitted to seek an injunctive sales ban against Novis.Cevap
- DAgreeing to abide by an arbitration panel's royalty determination is necessary for a patent implementer to avoid an impasse in licensing negotiations.
- EThe official arbitration panel will determine a royalty rate that is lower than the rate VeloCom initially requested in its negotiations with Novis.