How SEP Hold-up Can Lead to Entrenchment

Hold-up in the standard essential patent (“SEP”) context can lead to entrenchment, disadvantaging new entrants and smaller firms by raising SEP licensing costs. Former and current enforcement officials have acknowledged the dangers of SEP hold-up, warning that it can harm competition by leading to higher prices and reduced innovation. Despite previous efforts, however, the U.S. agencies have not issued a new policy statement on SEPs after withdrawing their previous policy statements in 2