{"id":1747,"date":"2025-02-12T15:54:30","date_gmt":"2025-02-12T15:54:30","guid":{"rendered":"https:\/\/ipfray.com\/?p=1747"},"modified":"2025-02-13T09:14:52","modified_gmt":"2025-02-13T09:14:52","slug":"a-solid-step-forward-or-missed-opportunity-market-divided-over-eus-sep-regulation-withdrawal","status":"publish","type":"post","link":"https:\/\/ipfray.com\/staging1\/a-solid-step-forward-or-missed-opportunity-market-divided-over-eus-sep-regulation-withdrawal\/","title":{"rendered":"A \u201csolid step\u201d forward or \u201cmissed opportunity\u201d: market divided over EU\u2019s SEP Regulation withdrawal"},"content":{"rendered":"\n<p>Following months of criticism, including at a major event hosted by Nokia and Ericsson last month (<a href=\"https:\/\/ipfray.com\/europe-has-one-foot-in-the-morgue-nokia-and-ericsson-to-hold-eu-innovation-summit-today-call-on-withdrawal-of-harmful-sep-regulation\/\">January 16, 2025 ip fray article<\/a>), the European Commission yesterday dropped the EU regulation on standard-essential patents (<a href=\"https:\/\/ipfray.com\/european-commission-drops-eu-sep-regulation-in-line-with-its-promise-to-depart-from-overregulation-new-proposal-may-or-may-not-come\/\">February 11, 2025 ip fray article<\/a>).<\/p>\n\n\n\n<p>It said in a statement that this was due to there being \u201c[n]o foreseeable agreement\u201d and that the EC will \u201cassess whether another proposal should be tabled or another type of approach should be chosen.\u201d The move has come as a major surprise to members across the market on either side of the table.<\/p>\n\n\n\n<p>Europe\u2019s competitiveness, according to Nokia\u2019s CEO Pekka Lundmark at the event last month, has \u201cone foot in the morgue\u201d, so it has come as a relief to many that the EC\u2019s 2025 work programme, adopted today, outlines ambitions to boost competitiveness, enhance security, and bolster economic resilience in the EU (<a href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/ip_25_466\">February 12, 2025 EC press release<\/a>).<\/p>\n\n\n\n<p>In a statement today, EC Executive Vice President for Tech Sovereignty Henna Virkkunen emphasized that Europe \u201cneeds less bureaucracy and more space for innovation and entrepreneurship\u201d. Mrs. Virkkunen was very vocal about the withdrawal of the Regulation even before becoming an EU commissioner.<\/p>\n\n\n\n<p>\u201cWe want to cut the red tape and work smarter,\u201d she said today, noting that her main priorities moving forward are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>AI and speeding up innovation<\/li>\n\n\n\n<li>Easing the administrative burden of businesses and the new Digital Wallet<\/li>\n\n\n\n<li>Preparedness for threats and strengthening our common security.<\/li>\n<\/ul>\n\n\n\n<p><strong>ip fray<\/strong> reached out to and collected responses from an array of sources across the market on the EC\u2019s SEP Regulation withdrawal decision. Here, then, is what they had to say:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>\u2018A promising indication it will no longer over-regulate\u2019<\/strong><\/h4>\n\n\n\n<p>The EC\u2019s decision has been widely welcomed by SEP holders and patent pool administrators, however, including the likes of Nokia which was among the first to put out a statement yesterday. It said the company shares the EC\u2019s goals for \u201cmore transparent and efficient licensing of SEPs\u201d but the Regulation was \u201cflawed\u201d and \u201cwould not have delivered on these objectives\u201d.&nbsp;<\/p>\n\n\n\n<p>Nokia continued:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cInstead, it would have had an adverse impact on the global innovation ecosystem, in particular the incentives for European companies to invest billions of euros each year in R&amp;D, for European leadership in 5G and 6G, and for Europe\u2019s future competitiveness and resilience. The Commission\u2019s willingness to rethink its approach on this important topic is a positive step. Nokia is ready to engage constructively with the Commission and other stakeholders to deliver a fair and balanced framework for the licensing of SEPs that supports the continued development of global open standards.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Patent pool operator Sisvel also praised the EC\u2019s decision. \u201cThis move aligns with the principles spelled out in the Draghi report and the EU\u2019s new agenda on competitiveness and reinforces European leadership in standards-related innovation,\u201d it said.<\/p>\n\n\n\n<p>Sisvel stated that it is \u201cencouraged\u201d by the EC\u2019s new focus on restoring European competitiveness and that yesterday\u2019s withdrawal decision is a \u201csolid step in this direction\u201d. It added:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe removal of a major uncertainty will bring immediate relief to European innovators, who have a central role to play in restoring dynamism and boosting growth.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Meanwhile, Avanci\u2019s VP of marketing and communications Mark Durrant told <strong>ip fray<\/strong> that it continues to believe market-driven joint licensing solutions, where participation is always optional and which find a compromise that can be widely accepted by both licensees and licensors, are better suited to foster simplification and efficiency in SEP licensing.<\/p>\n\n\n\n<p>Access Advance also stated to <strong>ip fray<\/strong> that it &#8220;applauds&#8221; the decision as it avoids the &#8220;inefficient duplication and additional expense&#8221; of a regulatory mechanism to address issues that are&nbsp;&#8220;already&nbsp;addressed by&nbsp;procompetitive patent pools like those offered by Access&nbsp;Advance.&#8221;<\/p>\n\n\n\n<p>A handful of lawyers also welcomed the EC\u2019s move. Arnold Ruess partner Cordula Schumacher told <strong>ip fray<\/strong>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis is a promising indication that the new Commission understands that we should de-regulate, not over-regulate. I hope that this common sense will also apply to other areas to foster innovation and market dynamics for a stronger and optimistic Europe, seeing opportunities rather than fearing risks.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Bird &amp; Bird IP lawyer Wouter Pors also believes the proposal was \u201cseriously flawed\u201d and even \u201cviolated the access to justice \u2013 especially to the UPC \u2013 under the European Convention on Human Rights.\u201d<\/p>\n\n\n\n<p>He added that there was \u201cno evidence\u201d that this proposal would actually solve an existing problem:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe EPO and the UPC have both taken the position that they can handle issues with regard to SEPs if proper regulation is enacted (if that is necessary at all). The UPC Mannheim Local Division has already decided on 22 November 2024 that it is capable of setting FRAND rates.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>And finally, IP Europe told <strong>ip fray<\/strong>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;IP Europe believes that the Work Programme of the European Commission reflects its commitment to strengthen Europe\u2019s competitiveness by encouraging research and development, innovation, and growth. The innovations and open standards that we champion are part of the solution. We look forward to working with the Commission to ensure a strong innovation ecosystem that acknowledges the crucial roles of patents and open standards\u2014both of which are key drivers of Europe&#8217;s growth, security, and technological leadership.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>\u2018A black day for our European SMEs\u2019<\/strong><\/h4>\n\n\n\n<p>The Fair Standards Alliance has criticized the move by the European Commission. It stated today that the decision \u201cundermines Europe\u2019s ability to lead in innovation and technology\u201d and \u201cdisregards\u201d Draghi\u2019s call to place innovation at the center of Europe\u2019s competitiveness strategy and to remove barriers that hinder progress in key industries.<\/p>\n\n\n\n<p>This decision sends a \u201cdeeply concerning signal\u201d to businesses that depend on a transparent and predictable SEP licensing framework, it wrote. Adding:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cInstead of fostering investment, growth, and technological leadership, it creates greater legal uncertainty and weakens European industry.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The FSA believes that the intention to withdraw the regulation is a \u201cmissed opportunity to \u201cstrengthen Europe\u2019s innovation ecosystem, reduce strategic dependencies on non-EU technologies and ensure fair access to essential infrastructure like 5G.\u201d<\/p>\n\n\n\n<p>In making this decision it \u201cjeopardises Europe\u2019s technological sovereignty\u201d and places European companies \u201cas a disadvantage in the global market\u201d, the FSA wrote.<\/p>\n\n\n\n<p>Marion Walsmann MEP, formerly the EU Parliament\u2019s rapporteur on the Regulation, has also reportedly come out with a statement. She has said that the EC made a \u201ccomplete mistake\u201d in dropping the proposal. She blamed \u201cpressure from a small number of very influential companies, mostly from third countries\u201d which \u201chas brought the Commission to its knees\u201d.&nbsp;<\/p>\n\n\n\n<p>\u201cThis is not just a missed opportunity, but a real slap in the face for European companies,\u201d especially small- and medium enterprises, \u201cwho would benefit from the new legislation,\u201d she said. \u201cToday is a black day for our European SMEs and their competitiveness.\u201d&nbsp;<\/p>\n\n\n\n<p>The director of IP policy at a major Chinese implementer told <strong>ip fray<\/strong> today:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe SEP licensing market remains imbalanced, with significant challenges persisting regardless of the proposed EU SEP Regulation. That\u2019s why I don\u2019t have a very strong position about what has happened now. While the regulation was definitely an attempt to address disproportionality, I believe implementers and SEP holders can find other solutions. We have already seen efforts from UK and Chinese courts to resolve these issues.\u201d<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Implementers, SEP holders and patent pools gave mixed reactions following yesterday\u2019s surprising news that the European Commission has dropped the proposed EU SEP Regulation.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[38,37,34,32,11,14,15,54],"tags":[],"class_list":["post-1747","post","type-post","status-publish","format-standard","hentry","category-eu-sep-regulation","category-ip-legislation","category-nokia","category-oppo","category-patent-policy","category-patents","category-standard-essential-patents","category-unified-patent-court"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/comments?post=1747"}],"version-history":[{"count":11,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1747\/revisions"}],"predecessor-version":[{"id":1763,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1747\/revisions\/1763"}],"wp:attachment":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/media?parent=1747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/categories?post=1747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/tags?post=1747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}