FRAND Terms

FRAND terms—Fair, Reasonable, and Non-Discriminatory—refer to the licensing rules for essential technology patents, especially in the tech industry. When a company holds patents critical for widely used standards (like Wi-Fi or 4G), they agree to license these patents to others on FRAND terms. This means they must offer fair and reasonable license fees and treat all licensees equally, promoting innovation and competition. The goal is to ensure access to important technology without monopolistic practices, balancing patent holders' rights with the broader public and industry needs.