European Commission calls surprise halt to controversial proposed SEP
13 Feb 2025
The European Commission has withdrawn its controversial proposal for an EU regulation covering Standard Essential Patents (SEPs). The news was revealed in the EC work programme for 2025, which was published on Tuesday (February 11, 2025).
The work programme document says the SEP regulation has been shelved because the EC now believes there is no possibility of agreement over them in the foreseeable future. It adds: “The Commission will assess whether another proposal should be tabled or another type of approach should be chosen.” However, EU experts suggest that there is unlikely to be any action over SEPs under the current European Commission term, which lasts until 2029.
The proposed SEP regulations had attracted considerable criticism from patent holders, IP organisations and foreign governments, including the US. There has also been a backlash against over-regulation, both within the EU and outside it.
However, the regulations were supported by various large EU-based companies, in particular from the automotive sector, and organisations representing the growing ‘Internet of Things’ sectors, where SEPs are viewed as key to inter-operability of a wide range of devices, including smart cars and digital health wearables.
What are SEPs, and why do they matter?
SEPs are patents that protect technology which has been declared essential in a technical standard or specification developed by a Standard Development Organisation (SDO) or Standard Setting Organisation (SSO).
The idea behind them is to ensure that devices in a sector such as telecoms and mobile phones are capable of communicating with each other. Without SEPs, for example, mobile phone networks would not exist in their current form. Every manufacturer would have to create its own network.
To quote a briefing document from the EU Parliament during the discussions around the proposed regulation:
“Many standards are based on patented technologies. In the mobile telecommunications sector, for instance, 2G (GSM), 3G (UMTS), 4G (LTE), 5G and WiFi networks all rely on patented technologies to ensure the compatibility of complex technologies and enable the interoperability of devices,”
Obviously, owning an SEP can give a company a lot of power in its marketplace, To reduce the likelihood of abuse or price-gouging, SDOs/SSOs will usually ask patent holders to commit to licensing their IP on Fair, Reasonable and Non-Discriminatory (FRAND) terms as a condition of having their patent named as an SEP.
FRAND licensing means SEP holders get compensated for the value of their patents, while also reducing the likelihood of SEP holders engaging in anticompetitive behaviour or over-charging.
The proposed SEP regulations would have seen the creation of an SEP and FRAND ‘competence centre’ within the EU Intellectual Property Office (EUIPO). SEPs holders would have had to register their SEPs with the EUIPO, which would then validate them and set FRAND criteria for them.
Some critics pointed out that the EUIPO is not the patent-granting body for Europe; its focus is on trade marks and design rights. Patents are the responsibility of the European Patent Office (EPO) under the 1973 European Patent Convention (EPC). Currently, 39 countries, including all countries of the European Union as well as the UK, have signed up to the EPC, compared with the EU’s current 27 member states.
Judges of the Unified Patent Court, which was established in 2023, had also raised concerns that there might have been the potential for conflict between the proposed SEP regulations and the workings of the UPC and the Unitary Patent it supports.
Judges of the Unified Patent Court, which was established in 2023, had also raised concerns that there might have been the potential for conflict between the proposed SEP regulations and the workings of the UPC and the Unitary Patent it supports. The Unitary Patent reduces costs for patent applications and enforcement in the 18 EU member states which have so far ratified the Agreement on a Unified Patent Court (UPCA).
The European Commission has withdrawn its controversial proposal for an EU regulation covering Standard Essential Patents (SEPs). The news was revealed in the EC work programme for 2025, which was published on Tuesday (February 11, 2025).
The work programme document says the SEP regulation has been shelved because the EC now believes there is no possibility of agreement over them in the foreseeable future. It adds: “The Commission will assess whether another proposal should be tabled or another type of approach should be chosen.” However, EU experts suggest that there is unlikely to be any action over SEPs under the current European Commission term, which lasts until 2029.
The proposed SEP regulations had attracted considerable criticism from patent holders, IP organisations and foreign governments, including the US. There has also been a backlash against over-regulation, both within the EU and outside it.
However, the regulations were supported by various large EU-based companies, in particular from the automotive sector, and organisations representing the growing ‘Internet of Things’ sectors, where SEPs are viewed as key to inter-operability of a wide range of devices, including smart cars and digital health wearables.
What are SEPs, and why do they matter?
SEPs are patents that protect technology which has been declared essential in a technical standard or specification developed by a Standard Development Organisation (SDO) or Standard Setting Organisation (SSO).
The idea behind them is to ensure that devices in a sector such as telecoms and mobile phones are capable of communicating with each other. Without SEPs, for example, mobile phone networks would not exist in their current form. Every manufacturer would have to create its own network.
To quote a briefing document from the EU Parliament during the discussions around the proposed regulation:
“Many standards are based on patented technologies. In the mobile telecommunications sector, for instance, 2G (GSM), 3G (UMTS), 4G (LTE), 5G and WiFi networks all rely on patented technologies to ensure the compatibility of complex technologies and enable the interoperability of devices,”
Obviously, owning an SEP can give a company a lot of power in its marketplace, To reduce the likelihood of abuse or price-gouging, SDOs/SSOs will usually ask patent holders to commit to licensing their IP on Fair, Reasonable and Non-Discriminatory (FRAND) terms as a condition of having their patent named as an SEP.
FRAND licensing means SEP holders get compensated for the value of their patents, while also reducing the likelihood of SEP holders engaging in anticompetitive behaviour or over-charging.
The proposed SEP regulations would have seen the creation of an SEP and FRAND ‘competence centre’ within the EU Intellectual Property Office (EUIPO). SEPs holders would have had to register their SEPs with the EUIPO, which would then validate them and set FRAND criteria for them.
Some critics pointed out that the EUIPO is not the patent-granting body for Europe; its focus is on trade marks and design rights. Patents are the responsibility of the European Patent Office (EPO) under the 1973 European Patent Convention (EPC). Currently, 39 countries, including all countries of the European Union as well as the UK, have signed up to the EPC, compared with the EU’s current 27 member states.
Judges of the Unified Patent Court, which was established in 2023, had also raised concerns that there might have been the potential for conflict between the proposed SEP regulations and the workings of the UPC and the Unitary Patent it supports.
Judges of the Unified Patent Court, which was established in 2023, had also raised concerns that there might have been the potential for conflict between the proposed SEP regulations and the workings of the UPC and the Unitary Patent it supports. The Unitary Patent reduces costs for patent applications and enforcement in the 18 EU member states which have so far ratified the Agreement on a Unified Patent Court (UPCA).
The European Commission has withdrawn its controversial proposal for an EU regulation covering Standard Essential Patents (SEPs). The news was revealed in the EC work programme for 2025, which was published on Tuesday (February 11, 2025).
The work programme document says the SEP regulation has been shelved because the EC now believes there is no possibility of agreement over them in the foreseeable future. It adds: “The Commission will assess whether another proposal should be tabled or another type of approach should be chosen.” However, EU experts suggest that there is unlikely to be any action over SEPs under the current European Commission term, which lasts until 2029.
The proposed SEP regulations had attracted considerable criticism from patent holders, IP organisations and foreign governments, including the US. There has also been a backlash against over-regulation, both within the EU and outside it.
However, the regulations were supported by various large EU-based companies, in particular from the automotive sector, and organisations representing the growing ‘Internet of Things’ sectors, where SEPs are viewed as key to inter-operability of a wide range of devices, including smart cars and digital health wearables.
What are SEPs, and why do they matter?
SEPs are patents that protect technology which has been declared essential in a technical standard or specification developed by a Standard Development Organisation (SDO) or Standard Setting Organisation (SSO).
The idea behind them is to ensure that devices in a sector such as telecoms and mobile phones are capable of communicating with each other. Without SEPs, for example, mobile phone networks would not exist in their current form. Every manufacturer would have to create its own network.
To quote a briefing document from the EU Parliament during the discussions around the proposed regulation:
“Many standards are based on patented technologies. In the mobile telecommunications sector, for instance, 2G (GSM), 3G (UMTS), 4G (LTE), 5G and WiFi networks all rely on patented technologies to ensure the compatibility of complex technologies and enable the interoperability of devices,”
Obviously, owning an SEP can give a company a lot of power in its marketplace, To reduce the likelihood of abuse or price-gouging, SDOs/SSOs will usually ask patent holders to commit to licensing their IP on Fair, Reasonable and Non-Discriminatory (FRAND) terms as a condition of having their patent named as an SEP.
FRAND licensing means SEP holders get compensated for the value of their patents, while also reducing the likelihood of SEP holders engaging in anticompetitive behaviour or over-charging.
The proposed SEP regulations would have seen the creation of an SEP and FRAND ‘competence centre’ within the EU Intellectual Property Office (EUIPO). SEPs holders would have had to register their SEPs with the EUIPO, which would then validate them and set FRAND criteria for them.
Some critics pointed out that the EUIPO is not the patent-granting body for Europe; its focus is on trade marks and design rights. Patents are the responsibility of the European Patent Office (EPO) under the 1973 European Patent Convention (EPC). Currently, 39 countries, including all countries of the European Union as well as the UK, have signed up to the EPC, compared with the EU’s current 27 member states.
Judges of the Unified Patent Court, which was established in 2023, had also raised concerns that there might have been the potential for conflict between the proposed SEP regulations and the workings of the UPC and the Unitary Patent it supports.
Judges of the Unified Patent Court, which was established in 2023, had also raised concerns that there might have been the potential for conflict between the proposed SEP regulations and the workings of the UPC and the Unitary Patent it supports. The Unitary Patent reduces costs for patent applications and enforcement in the 18 EU member states which have so far ratified the Agreement on a Unified Patent Court (UPCA).
The European Commission has withdrawn its controversial proposal for an EU regulation covering Standard Essential Patents (SEPs). The news was revealed in the EC work programme for 2025, which was published on Tuesday (February 11, 2025).
The work programme document says the SEP regulation has been shelved because the EC now believes there is no possibility of agreement over them in the foreseeable future. It adds: “The Commission will assess whether another proposal should be tabled or another type of approach should be chosen.” However, EU experts suggest that there is unlikely to be any action over SEPs under the current European Commission term, which lasts until 2029.
The proposed SEP regulations had attracted considerable criticism from patent holders, IP organisations and foreign governments, including the US. There has also been a backlash against over-regulation, both within the EU and outside it.
However, the regulations were supported by various large EU-based companies, in particular from the automotive sector, and organisations representing the growing ‘Internet of Things’ sectors, where SEPs are viewed as key to inter-operability of a wide range of devices, including smart cars and digital health wearables.
What are SEPs, and why do they matter?
SEPs are patents that protect technology which has been declared essential in a technical standard or specification developed by a Standard Development Organisation (SDO) or Standard Setting Organisation (SSO).
The idea behind them is to ensure that devices in a sector such as telecoms and mobile phones are capable of communicating with each other. Without SEPs, for example, mobile phone networks would not exist in their current form. Every manufacturer would have to create its own network.
To quote a briefing document from the EU Parliament during the discussions around the proposed regulation:
“Many standards are based on patented technologies. In the mobile telecommunications sector, for instance, 2G (GSM), 3G (UMTS), 4G (LTE), 5G and WiFi networks all rely on patented technologies to ensure the compatibility of complex technologies and enable the interoperability of devices,”
Obviously, owning an SEP can give a company a lot of power in its marketplace, To reduce the likelihood of abuse or price-gouging, SDOs/SSOs will usually ask patent holders to commit to licensing their IP on Fair, Reasonable and Non-Discriminatory (FRAND) terms as a condition of having their patent named as an SEP.
FRAND licensing means SEP holders get compensated for the value of their patents, while also reducing the likelihood of SEP holders engaging in anticompetitive behaviour or over-charging.
The proposed SEP regulations would have seen the creation of an SEP and FRAND ‘competence centre’ within the EU Intellectual Property Office (EUIPO). SEPs holders would have had to register their SEPs with the EUIPO, which would then validate them and set FRAND criteria for them.
Some critics pointed out that the EUIPO is not the patent-granting body for Europe; its focus is on trade marks and design rights. Patents are the responsibility of the European Patent Office (EPO) under the 1973 European Patent Convention (EPC). Currently, 39 countries, including all countries of the European Union as well as the UK, have signed up to the EPC, compared with the EU’s current 27 member states.
Judges of the Unified Patent Court, which was established in 2023, had also raised concerns that there might have been the potential for conflict between the proposed SEP regulations and the workings of the UPC and the Unitary Patent it supports.
Judges of the Unified Patent Court, which was established in 2023, had also raised concerns that there might have been the potential for conflict between the proposed SEP regulations and the workings of the UPC and the Unitary Patent it supports. The Unitary Patent reduces costs for patent applications and enforcement in the 18 EU member states which have so far ratified the Agreement on a Unified Patent Court (UPCA).
Read Recent Articles
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2025. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2025. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2025. All rights reserved.
Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders
Accreditations
Copyright © Inngot Limited 2019-2025. All rights reserved.