The Fourth Industrial Revolution along with the spread of the IoT means that SEP licensing negotiations are expected to be held more often between SEP holders in the information and communication technology field and business entities in industries other than the telecommunications industry, especially multi-component products industries such as automobiles, game machines etc. However, risks involving SEP licensing negotiations and disputes have been increasing significantly because licensing negotiation practices and market views on royalties are very different between the above business entities and SEP holders. Being aware of such issues, the Ministry of Economy, Trade and Industry (METI) published the Guide to Fair Value Calculation of Standard Essential Patents for Multi-Component Products (the basic concept) on April 21 2020. The basic concept has been formulated based on the report (dated March 31 2020) of the Study Group on Fair Value Calculation of Standard Essential Patents for Multi-Component Products (report), commissioned by the Policy Planning and Coordination Division, Manufacturing Industries Bureau, the METI.