Essential patent

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An essential patent is a patent which discloses and claims one or more inventions that are required to practice a given industry standard. [1] Standardisation bodies, therefore, often require members disclose and grant licenses to patents and pending patent applications that they own and that cover a standard that the body is developing. Failure to do so is a form of patent misuse.

If standards bodies fail to get licenses to all patents that are essential to practicing a standard, then the owners of those unlicensed patents can often demand royalties from those who ultimately adopt the standards. This is what happened, for example, to the GIF and JPEG standards.

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