Standard-Essential Patents, FRAND & Cross-Border Technology Licensing in Bangladesh

by Barrister Tahmidur Rahman | Sep 20, 2026

Technology, IP & DataLicensing standards on fair terms8 min read

Standard-Essential Patents, FRAND & Cross-Border Technology Licensing in Bangladesh

We advise device manufacturers, assemblers, technology owners, telecom operators and investors on standard-essential patents and FRAND licensing with a Bangladesh connection, from portfolio assessment and negotiation through royalty remittance, tax, competition law, patent protection and cross-border disputes.

Overview

Standard-essential patents and FRAND licensing for Bangladesh

Standard-essential patents cover technology that must be used to comply with a technical standard, such as cellular connectivity, Wi-Fi, video coding or other interoperability standards. Because implementers cannot avoid them, patent owners that commit to standards bodies usually promise to license on fair, reasonable and non-discriminatory (FRAND) terms. For Bangladesh, these questions are no longer remote. Local assembly of mobile handsets, connected devices and electronics, the growth of telecom infrastructure and technology exports mean that Bangladeshi businesses increasingly negotiate, pay or receive royalties for standardised technology. Our technology, IP and data team advises on both sides of these negotiations.

Most licensing of standard-essential patents is global in practice, even though patents are national rights. Licensors usually offer portfolio licences covering all countries, and the major disputes over FRAND rates and injunctions are fought in courts in the UK, Germany, the United States, China, India and, increasingly, the Unified Patent Court in Europe. A Bangladeshi manufacturer exporting devices, or a foreign brand using a Bangladeshi assembler, can be affected by decisions in those forums. We help clients understand where exposure actually lies, which markets drive the licensor's leverage, and how Bangladesh fits into the overall picture.

In Bangladesh itself, patents are granted and administered by the Department of Patents, Designs and Trademarks under the Patent Act 2023, which replaced the colonial-era legislation. The Act includes provisions on compulsory licensing and the working of patents, and Bangladesh's obligations under the TRIPS Agreement shape its framework. Whether a licensor holds granted Bangladeshi patents within its portfolio matters for local enforcement risk and royalty allocation. We review registers, portfolio claims and essentiality evidence so that a client negotiating a global licence knows whether Bangladesh is a strong or weak market for the patent owner.

Competition law adds a second layer. The Competition Act 2012 prohibits anti-competitive agreements and abuse of dominance, and FRAND disputes elsewhere have often turned on whether a patent owner's conduct, or an implementer's delay, was abusive or in bad faith. Licensing structures, royalty bases, bundling of essential and non-essential patents, and restrictions on downstream use can all raise questions. We advise licensors and licensees on structuring terms and negotiation conduct that withstands competition scrutiny, in Bangladesh and in the markets where the licence will be tested. Dated records of offers and responses show who negotiated in good faith.

Money must also move. Royalty and technical fee payments from Bangladesh to foreign licensors pass through authorised dealer banks, are subject to foreign exchange rules and approval requirements that historically involved BIDA and Bangladesh Bank, and attract withholding tax. Following the 2026 merger of BIDA into Invest Bangladesh, we confirm the current route for each case. Licence terms must be drafted so that payment, tax gross-up and audit provisions actually work under local rules. Where negotiations break down, we coordinate with our dispute resolution practice and counsel abroad on arbitration, court proceedings and enforcement.

01 · What we handle

Core workstreams

  • Portfolio and exposure assessment
  • FRAND licence negotiation
  • Patent pools and platforms
  • Royalty payments and tax
02 · How it runs

Four clear stages

  1. 01Map products and standards
  2. 02Assess the position
  3. 03Negotiate the licence
  4. 04Resolve and enforce
03 · Start here

Talk to a partner

Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

Our licensing and SEP work

Workstream 01Technology, IP & Data

Portfolio and exposure assessment

  • Map products and standards
  • Assess the position
  • Negotiate the licence
  • Resolve and enforce
Workstream 02Technology, IP & Data

FRAND licence negotiation

  • Map products and standards
  • Assess the position
  • Negotiate the licence
  • Resolve and enforce
Workstream 03Technology, IP & Data

Patent pools and platforms

  • Map products and standards
  • Assess the position
  • Negotiate the licence
  • Resolve and enforce
Workstream 04Technology, IP & Data

Royalty payments and tax

  • Map products and standards
  • Assess the position
  • Negotiate the licence
  • Resolve and enforce
Workstream 05Technology, IP & Data

Competition and regulatory advice

  • Map products and standards
  • Assess the position
  • Negotiate the licence
  • Resolve and enforce
Workstream 06Technology, IP & Data

Disputes and enforcement

  • Map products and standards
  • Assess the position
  • Negotiate the licence
  • Resolve and enforce
01

Portfolio and exposure assessment

We help implementers and patent owners understand which standards a product uses, which licensors and patent pools claim rights, where patents are granted, and how strong essentiality and validity claims appear. We work with technical experts and foreign counsel to produce a practical exposure map that informs budgeting, product launch decisions and negotiation strategy, rather than an abstract legal memorandum. Exposure to standard-essential patents is rarely uniform.

02

FRAND licence negotiation

We prepare negotiation strategy, draft and respond to offers, and negotiate licence agreements for standard-essential patents, including scope of products and territories, royalty base and rate, past-sales releases, most-favoured licensee terms, audit and reporting obligations. Throughout the negotiation we keep a careful record of conduct, because a party's willingness and good faith often matter if the dispute later reaches a court or arbitral tribunal abroad.

03

Patent pools and platforms

We advise manufacturers and technology owners on joining or licensing from patent pools and licensing platforms, comparing pool terms with bilateral licences, and checking how pool coverage interacts with obligations under existing agreements. For Bangladeshi assemblers working for foreign brands, we clarify which party is responsible for obtaining licences and how indemnities between brand and assembler should be allocated in manufacturing contracts. We also review pool audit terms.

04

Royalty payments and tax

We structure payment, tax and audit provisions so that royalties can lawfully leave Bangladesh, advising on foreign exchange documentation, any approvals now handled by Invest Bangladesh or Bangladesh Bank, withholding tax, double tax treaty relief and gross-up clauses. We also help licensees respond to royalty audits and resolve disputes about reported volumes, rates or underpayments, so that compliance problems do not grow into wider disputes.

05

Competition and regulatory advice

We assess licensing conduct and terms under the Competition Act 2012 and, with foreign counsel, under the competition rules of key export markets. That includes refusal to license, discriminatory rates, tying, non-assert demands and grant-back clauses. We advise on complaints to or investigations by the Bangladesh Competition Commission, and on how competition arguments can support a negotiating position without overstating them. Standard-essential patents raise these issues often.

06

Disputes and enforcement

When negotiations fail, we advise on strategy across forums: patent infringement and validity proceedings in Bangladesh, FRAND rate-setting and injunction actions abroad, arbitration of licence terms, and anti-suit or interim relief applications. We coordinate with litigators in the UK, Europe, the US, China and India, and handle the Bangladesh side, including enforcement of foreign judgments and arbitral awards where relevant. Disputes over standard-essential patents move quickly.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Technology, IP & Data matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

Meet the firm →
01

We assemble mobile phones in Bangladesh. Do we need licences for standard-essential patents?

Possibly, depending on who sells the devices and under which brand. Licensors usually seek licences from the brand owner at the end-product level, but they may approach assemblers, component suppliers or importers, especially where the brand has no licence. Products sold in Bangladesh using cellular or wireless standards will practise patented technology, and the licensor may hold Bangladeshi patents. The manufacturing agreement should state clearly who must obtain licences and who indemnifies whom, including for past sales. We review the supply chain, contracts and the licensor's patent position to give a practical answer on exposure before production volumes grow.

02

What does FRAND actually mean for the royalty we pay?

FRAND does not specify a number. It is a commitment that a licence will be offered on fair, reasonable and non-discriminatory terms, and courts in different countries have developed methods to assess compliance, often comparing licences with similarly situated licensees or estimating the value of the patents within the standard. A licensor's first offer is usually a starting point. We help clients test offers against public information, comparable deals and economic analysis, and negotiate terms covering royalty base, caps, past sales and future products, with the aim of a licence that is defensible if later challenged.

03

Can a patent owner obtain an injunction against our products in Bangladesh?

In principle, a holder of a granted Bangladeshi patent can sue for infringement and seek injunctive relief from the courts, and the FRAND commitment does not automatically prevent that. In practice, courts elsewhere have weighed whether the patent owner offered FRAND terms and whether the implementer acted as a willing licensee. Bangladeshi courts have limited reported experience with disputes over standard-essential patents, so outcomes are less predictable. The more realistic risk for exporters is an injunction in a major market. We assess both and advise on conduct that reduces injunction exposure in each forum. Evidence of conduct matters everywhere.

04

We own patents on a standard. How can we license them into Bangladesh?

First, confirm which patents are granted or pending in Bangladesh and whether they are declared essential to the relevant standard. Then identify the implementers selling, assembling or importing products locally, and consider whether a bilateral licence, pool licence or global portfolio deal is the right route. Offers should follow your FRAND commitment and a documented negotiation process. Licence agreements must address foreign exchange, withholding tax and audit rights under Bangladesh rules. We advise on all of these steps for licensors of standard-essential patents and on enforcement options if implementers refuse to engage. Clear offers support enforcement later.

05

How are royalties remitted from Bangladesh to a foreign licensor?

Royalty and technical fee remittances go through authorised dealer banks under Bangladesh's foreign exchange rules. Depending on the arrangement and amounts, approval or registration may be required, a function that historically involved BIDA and now sits with Invest Bangladesh, alongside Bangladesh Bank. Withholding tax applies to royalty payments to non-residents, subject to any double tax treaty relief. Licence agreements should anticipate these steps, including timing, documents and who bears tax. We advise on the current requirements and help clients prepare the documentation banks and authorities typically ask for, so payments are not held up unnecessarily.

06

Does Bangladesh competition law apply to licensing of standard-essential patents?

Yes. The Competition Act 2012 applies to agreements and conduct affecting markets in Bangladesh, including licensing arrangements. Questions can arise where a dominant licensor refuses to license, charges discriminatory rates, ties essential and non-essential patents, or imposes restrictive terms, and also where implementers coordinate their approach to licensors. The Bangladesh Competition Commission has not developed specific guidance on FRAND to date, so international practice is a useful guide. We advise on structuring negotiations and terms to reduce competition risk, and on whether a complaint is a realistic and proportionate tool in a given dispute.

07

Should our licence agreement include arbitration for FRAND disputes?

Arbitration can be attractive for disputes over standard-essential patents because it allows a single tribunal to determine global licence terms, keeps sensitive commercial information confidential and avoids parallel litigation in several countries. It requires both parties' consent, which is often difficult once a dispute has started. A licence agreement can provide for arbitration of rate disputes on renewal, or of disagreements about reporting and audit. The Arbitration Act 2001 supports enforcement of foreign awards in Bangladesh. We advise on drafting clauses, choosing institutions and seats, and running FRAND arbitrations with experienced co-counsel. Consent is easier before disputes.

08

What should a cross-border technology licence say about future products and new standards?

Standards evolve, and products change quickly. A licence should define licensed products and standards carefully, including how new generations, features and product categories are treated, whether royalties adjust, and what happens if the licensor acquires or transfers patents. Change-of-control, assignment and sublicensing provisions also matter for corporate groups and contract manufacturers. Poorly drafted scope clauses are a common source of later disputes over standard-essential patents and royalty underpayment. We draft these provisions with input from technical teams so that the licence fits the product roadmap rather than only current models. Clear scope drafting protects both sides.

How a matter runs

From first call to resolution.

  1. 01

    Map products and standards

    We identify the standards used, the products and markets involved, the licensors and pools asserting rights, and the contracts that allocate licensing responsibility between brand owners, manufacturers and suppliers in the chain. This shows where standard-essential patents create real exposure.

  2. 02

    Assess the position

    With technical and foreign counsel, we evaluate patent coverage, essentiality, validity, comparable terms and competition issues to define a realistic negotiating range and the main legal risks on each side. Findings are summarised clearly for decision-makers. Budgets and priorities are agreed.

  3. 03

    Negotiate the licence

    We run or support negotiations, keep a careful record of conduct, and draft licence, payment, tax and audit terms that work under Bangladesh rules and in the markets that matter most to the client. Terms for standard-essential patents are tested against comparables before signing.

  4. 04

    Resolve and enforce

    If agreement fails, we coordinate litigation, arbitration or competition steps across jurisdictions, handle Bangladesh proceedings and enforcement, and keep settlement options under review throughout the dispute. Strategy is reviewed as the dispute develops. Settlement terms are drafted to last.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

What are standard-essential patents, and why do they matter?
They are patents that claim technology which must be used to comply with a technical standard, so that a product meeting the standard necessarily practises the invention. Examples include patents essential to cellular, Wi-Fi and video standards. Holders usually declare them to standards bodies and commit to license on FRAND terms. Essentiality is often disputed, because declarations are made by patent owners themselves and are not checked in detail by the standards body. Standard-essential patents therefore deserve careful technical review before any royalty is accepted.
Has Bangladesh replaced its old patent law, and what changed?
Yes. The Patent Act 2023 replaced the Patents and Designs Act 1911 for patents, with designs addressed separately. It modernises examination, opposition, compulsory licensing and enforcement, and reflects Bangladesh's international obligations. Rules and practice under the Act continue to develop. We advise on filing, prosecution and enforcement under the current regime and on how transitional provisions apply to patents granted under the old law. Holders of standard-essential patents should check how their Bangladeshi filings are treated.
Can we challenge whether a declared patent is really essential or valid?
Yes. Essentiality can be challenged in negotiation using claim charts and technical analysis, and in litigation where a court decides whether the patent claims are actually required by the standard. Validity can also be challenged through opposition, revocation or invalidity proceedings in the relevant countries. Such challenges are a normal part of FRAND negotiation, but they should be used carefully to avoid appearing to delay in bad faith. We help clients challenge standard-essential patents where the evidence supports it.
What is a patent pool, and should our company join one?
A patent pool collects patents from several owners for a standard and licenses them together on published terms, reducing transaction costs. Joining a pool as a licensee can provide broad coverage quickly, but pools rarely include every relevant patent owner, so bilateral licences may still be needed. We compare pool terms with the client's products and existing licences, and advise whether a pool, bilateral deals or both are the better route. Pools for standard-essential patents differ widely in terms and coverage.
Do standard-essential patents affect telecom operators in Bangladesh?
Usually less directly than device makers, because licensing typically happens at the device level. However, operators may face claims in relation to network equipment, operator-branded devices or services, and infrastructure suppliers may seek indemnities. Operators should review procurement contracts for IP warranties and indemnities, and check how vendors have dealt with licensing of the standards their equipment implements. Procurement contracts should address standard-essential patents expressly, including who pays any royalty and who defends claims. Vendors should explain their position.
How long do FRAND licence negotiations usually take?
Simple licences for small volumes can conclude within months, while global portfolio negotiations between major companies can run for years and involve parallel litigation. Timelines depend on product volumes, the number of licensors, the strength of each side's position and the forums available. Keeping a well-organised negotiation record and responding promptly to offers usually shortens the process and protects the client's position if a court later reviews conduct. Licences for standard-essential patents should also plan for renewal well ahead of expiry, so negotiations do not restart under pressure.
Can we use a licence covering standard-essential patents as collateral or in an acquisition?
Licences and royalty streams can be valuable assets. In acquisitions, buyers should check whether licences transfer on change of control, whether past sales are released, and whether the target has unlicensed exposure. Royalty income can support financing in some cases. We advise on due diligence, transfer provisions and warranties for technology transactions where licensing of essential patents is a material value driver. Investors in technology companies should ask about standard-essential patents early in due diligence. Warranties should cover ownership of the patents, the scope of existing licences and any unresolved royalty claims.
How do we start a FRAND licensing matter with TRW?
Send us a summary of your products, the standards involved, any correspondence from licensors or pools, and your main markets. We will propose an initial assessment and identify the foreign counsel and technical experts who may be needed. Contact us through our contact page, by telephone on +880 1708 000660 or by email at info@trw.co. Early advice before replying to a licensor's first letter is often the most valuable stage. We respond promptly to urgent letters and deadlines.

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