Mixed reaction from market as EU withdraws SEP regulation


Recently, a representative from the EU Commission revealed at an SEP conference in Brussels that the Polish government, which currently holds the presidency of the European Council, is determined to advance the proposal for a regulation concerning standard essential patents (SEPs). This initiative, previously stalled under the Hungarian Council's guidance, had faced predictions of requiring up to two and a half years for final approvals among EU member states. However, the unexpected shift in the Commission's stance is noteworthy, as it announced that it would not be pursuing the SEP regulation any further, as outlined in its 2025 work program. The document indicated a lack of anticipated consensus, leading to an evaluation of alternative proposals or approaches, suggesting a substantial delay in any future attempts. Interestingly, European industries, including automotive manufacturers, had advocated for such regulation, facing intense opposition from prominent SEP holders like Nokia and Ericsson. Following robust discussions within the EU Parliament, the proposal had advanced relatively unaltered, but member states expressed reservations, anticipating necessary modifications. The Commission had aimed to establish a competence center within the European Union Intellectual Property Office (EUIPO), currently focused on copyright and trademarks, to conduct essentiality checks. Furthermore, the regulation proposed a non-binding determination by mediators regarding FRAND, with limitations on enforcing SEPs during examinations, which would impact many cases in the Unified Patent Court. Given the evolving global political climate, with trends favoring deregulation, there have been calls for a more pragmatic alternative regarding the SEP issue. The lack of imminent action from the current Commission, serving until December 2029, has resulted in positive feedback from industry players, including Nokia, which expressed readiness to collaborate constructively on enhancing licensing frameworks for SEPs.



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