Standards, Patents, and the National Smart Grid

Jorge L. Contreras

6/11/2014
(Original Publish Date: 9/26/2012)

Given the critical importance of the national Smart Grid, it is imperative that the governmental agencies overseeing the identification and development of Smart Grid standards take appropriate measures to ensure that broad, national implementation of standardized Smart Grid technology is not hindered either by undue economic burdens imposed by patent holders or the threat of costly and disruptive patent litigation. In this article, I lay out a number of legal options available to the U.S. federal government for addressing potential patent encumbrances on Smart Grid standards. These range from relatively modest measures such as priority-setting within existing regulatory frameworks to more interventionist approaches, such as federal march-in rights, compulsory licensing, legislative exclusions of injunctive relief and the formation of patent pools.