Earlier in the year, the European Commission retracted its proposed regulation concerning standard-essential patents (SEPs) due to the lack of agreement between legislators in the European Parliament and the Council of Ministers. Nonetheless, Stéphane Séjourné, the Commission's executive vice-president for prosperity and industrial strategy, indicated that certain aspects of the withdrawn proposal could still be re-examined for future initiatives. Speaking at a recent session of the Parliament’s Legal Affairs Committee (JURI), Séjourné emphasized the Commission's commitment to exploring various avenues for advancing the regulatory ideas, whether through a fresh proposal or a different approach. SEPs are patents crucial for implementing technical standards, essential for interoperability across numerous industries such as telecommunications and the Internet of Things. SEP holders declare their patents as essential to relevant standardization organizations, such as the European Telecommunications Standards Institute (ETSI), which mandates fair, reasonable, and non-discriminatory (FRAND) licensing terms. However, disputes concerning the interpretation of FRAND terms frequently arise, leading to judicial resolutions across diverse jurisdictions, including in the UK, Germany, and the US. The April 2023 draft regulation aimed at enhancing transparency and reducing litigation costs in SEP licensing processes, proposing mandatory registration and essentiality verification of SEPs, alongside frameworks for setting royalty rates. Despite backing from some EU lawmakers, the proposal did not gain adequate support from the Council, leading to its withdrawal noted in the Commission's 2025 work program. Séjourné assured that the Commission remains focused on the overarching goals of transparency and industry competitiveness and announced a six-month consultation period to solicit opinions from both the Parliament and the Council regarding potential reintroduction of the regulatory framework. He maintained that the ultimate aim is to foster technological innovation and job retention within Europe.
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