UK government rejects new FRAND rate-setting track in SEP policy response

Context: In July 2025, the UK Intellectual Property Office (IPO) launched a consultation on proposed reforms to the SEP framework, seeking views on measures to improve transparency and efficiency in SEP licensing and dispute resolution. The proposals included a dedicated FRAND rate determination track within the Intellectual Property Enterprise Court (IPEC), greater disclosure of standard-related patent information, and potential changes to pre-litigation procedures, remedies and alternative dispute resolution.

What’s new:

• The UK government has today published its response to the 2025 SEP consultation, rejecting a dedicated FRAND rate determination track within the IPEC. Instead, it will explore court-anchored early FRAND evaluation and a voluntary, non-binding IPO opinion service.
• The government has also declined to reform injunction rules or establish a new ADR service, favoring voluntary disclosure requirements and guidance on licensing practices.

Direct impact: SEP holders and implementers will continue to rely on existing courts and ADR services to resolve licensing disputes, with no immediate changes to remedies. The proposed early FRAND evaluation and IPO opinion service could provide less costly routes to assessing licensing terms, while voluntary disclosure and new guidance aim to improve transparency and negotiations. However, these measures remain subject to further development and implementation.

Wider ramifications: The government’s decision signals a preference for targeted improvements to existing licensing and judicial procedures rather than broader regulatory intervention in the SEP ecosystem. It remains to be seen whether voluntary measures and non-binding guidance will effectively address information asymmetries and encourage earlier dispute resolution. The approach also reflects the UK’s efforts to avoid adding complexity to an increasingly fragmented international SEP landscape, in which the UK has played a central role since Unwired Planet v Huawei established its courts’ authority to determine global FRAND licensing terms.