Context: The World Intellectual Property Organization’s (WIPO’s) Arbitration and Mediation Center has the ability to offer the mediation of global standard-essential patent (SEP)/FRAND disputes. While the Unified Patent Court (UPC) will offer mediation through its Patent Mediation and Arbitration Centre (PMAC) next year, it is still unclear whether this will be available to use beyond the jurisdiction of the UPC. Even under BSH, the court is still limited by the UPC Agreement (UPCA).
What’s new: WIPO has launched an initiative that sees major standard-essential patent (SEP) holders pledge to SMEs selling and manufacturing IoT devices that they will use mediation to resolve impasses in SEP licensing negotiations. By agreeing to this pledge, an SEP holder commits that it will make an offer to enter into a confidential mediation with an IoT SME to seek to resolve the parties’ impasse over the terms of a license to SEPs owned by it before initiating against the IoT SME litigation or equivalent actions (if any) concerning any of the SEPs that are the subject of the prospective license. Nokia, Qualcomm, Ericsson and Huawei are among the initial signatories (November 20, 2025 WIPO Mediation Pledge).
Direct impact:
- If the mediation offer is accepted, the SEP holder will not bring actions against the IoT SME while the mediation is ongoing. This commitment is subject to the IoT SME, or any entity on its behalf, having not brought litigation or equivalent actions against the SEP holder prior to its acceptance of the mediation offer and reciprocally agreeing not to initiate such actions during the mediation.
- This is the first outcome of the WIPO-hosted SEP conference in September. Several of the signatories have issued statements, including Nokia, which stated that it hopes the pledge will help provide “comfort” to those concerned that IoT SMEs may become involved in SEP litigation. Meanwhile, Qualcomm noted that the pledge is a “commonsense commitment” that reflects the company’s “dedication to fairness” and supports the continued growth of innovation.
Wider ramifications: Much like the now-scrapped European regulation on SEPs (February 11, 2025 ip fray article), the UK government’s FRAND rate-setting initiative (July 15, 2025 ip fray article) is seeing advocates emphasize the role of SMEs. But through this mechanism, major SEP holders are seeking to demonstrate to policymakers that there is no need for additional intervention.
WIPO’s pledge notes that the SEP holder’s offer to mediate will be in accordance with the following conditions, unless the parties agree otherwise:
- The mediation will be submitted in accordance with the WIPO Mediation Rules.
- The SEP holder will provide 30 days to the IoT SME to accept its mediation offer before the offer expires. The SEP holder may condition its offer for the mediation to be completed within six months from acceptance of the offer.
- The SEP holder and IoT SME commit to enable the mediator to obtain from them the information that is material to the negotiation and conclusion of the Prospective License agreement on FRAND terms, in accordance with recognized commercial practices. In the event that confidentiality obligations preclude disclosure of information in the context of the mediation directly to the mediator and/or other party, the party with the confidential information will agree to work with the mediator to try to provide the necessary information, although at no time will either party be required to breach confidentiality obligations.
- The SEP holder will pay two-thirds of the mediator’s fee and administration fees in accordance with the WIPO Mediation Schedule of Fees and Costs, capped at a reasonable and proportionate amount in line with recognized commercial practices.
Comments from major SEP holders
Nokia’s Head of IP and Standards Adrian Howes said he is “proud to say Nokia is a supporter of [the pledge]” (November 20, 2025 LinkedIn post by Adrian Howes). He added:
“There is an expectation that SMEs will benefit significantly from the development of IoT connectivity standards, such as 5G. While there is little or no evidence that SMEs are subject to SEP litigation, I can understand the concerns expressed in some quarters, given the potential of the IoT. I would therefore strongly encourage other SEP holders to support the WIPO IoT SME Pledge along with Ericsson, Huawei, Nokia, Qualcomm and Sisvel. Mediation is a great tool for helping parties settle issues in a dispute. Over the last few years, Nokia has had a positive experience of using mediation to settle licensing disputes.”
Meanwhile, Qualcomm’s General Counsel Ann Chaplin said:
“The patent system is critically important to driving innovation globally. This is true for large and small companies alike. We support a system where companies, regardless of their size, are incentivized to innovate and seek a return on their investment. The WIPO Mediation Pledge for IoT SMEs is a commonsense commitment that reflects our dedication to fairness and supports the continued growth of innovation.”
Dylan LI, the Head of Huawei’s European IPR Department, provided the following response:
Huawei is committed to facilitating small and medium-sized enterprises to acess to the licensing of Standard-Essential Patents (SEPs), so they can confidently focus on innovation and growth in the IoT sector. We are dedicated to fostering a fair and balanced ecosystem and promoting sustainable industry development in an open and responsible manner.