Antitrust

Shearman & Sterling Antitrust Annual Report 2019

Shearman & Sterling LLP

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1 0 2 In particular, statements made over the past year by Assistant Attorney General (AAG) Makan Delrahim signal a clear departure from prior agency policy regarding the role of antitrust law in addressing violations of fair, reasonable and non-discriminatory (FRAND) commitments made by standard- essential patent (SEP) holders as part of the standard-setting process. While the DOJ and Federal Trade Commission (FTC) have historically taken the position that the antitrust laws may reach such violations, Delrahim has indicated that the DOJ under his watch will focus instead on potential antitrust violations by SEP licensees and on the potential for collusive behavior by SSOs and their participants. BACKGROUND SSOs are industry groups that establish compatibility standards, which enable interoperability of products made by different manufacturers. Such standards are a critical part of the digital technology sector in particular, where interconnectivity would not be possible without the widespread adoption of standardized technologies. Thus, antitrust agencies have long recognized that standard-setting supports growth and innovation, and is usually pro-competitive and efficiency-enhancing. By its very nature, however, the standard- setting process also can reduce competition and create antitrust risk. The process typically involves groups of competitors who collectively choose between competing technologies to UNILATERAL CONDUCT 19 T H E S T A N D A R D - S E T T I N G P R O C E S S A L S O C A N R E D U C E C O M P E T I T I O N A N D C R E A T E A N T I T R U S T R I S K U.S. Policy Shifts in Intellectual Property Antitrust Enforcement

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