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Economics professor discusses royalties at Heath Lecture Wednesday

Published: September 9th, 2013

Category: News

fdcarlto Dennis Carlton, the David McDaniel Keller Professor of Economics at the University of Chicago Booth School of Business, will deliver the fifth annual Bayard Wickliffe Heath Memorial Lecture at the University of Florida Levin College of Law.

Carlton’s presentation, “How Should Royalties be Determined in Standard-Setting Organizations?” will be Wednesday at 11 a.m. in the Martin Levin Advocacy Center. The event is free and open to the public.

Standard-setting organizations, such as the International Telecommunications Union, must establish standard technologies so that high-tech products are able to exchange and use information. One example is the Wi-Fi standard for local wireless networks, established by the Institute of Electrical and Electronics Engineers. If standard-setting organizations include patented technology in the standard, they typically require that the patent holder license standardized technology to everyone for a “fair, reasonable, and non-discriminatory,” or FRAND royalty. Nevertheless, holders of standards-essential patents often gain substantial monopoly power, which they sometimes use to “hold up” firms that adopt the standard.

High technology companies, including Microsoft, Motorola, Apple and Samsung have frequently met in high-stakes litigation over the FRAND requirement for their products.

Carlton will explain how economics can help courts and parties understand the FRAND requirement.

The Heath Memorial Lecture Series is made possible by a gift from Inez Heath, Ph.D., widow of Bayard “Wick” Heath. This year’s lecture is co-sponsored by the Robert F. Lanzillotti Public Policy Research Center and the Robert F. and Patricia J. Lanzillotti Family Fund. Before his death in 2008, Heath was the senior competition consultant with Info Tech, a Gainesville firm specializing in statistical and econometric consulting, expert witness testimony and antitrust law. Previous lecturers include Herbert Hovenkamp, William Kovacic and Joseph Harrington.

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