On 11 February 2025, the European Commission withdrew proposals for regulating Standard Essential Patents.

Background

Among 35 initiatives the European Commission plans to withdraw is the proposed regulation on Standard Essential Patents (SEPs). Other notable withdrawals are the AI Liability Directive and the ePrivacy Regulation.

In response to concerns about a significant lack of transparency around SEPs, the European Commission unveiled its proposed SEP Regulation in April 2023. The regulation was proposed to promote the harmonisation of patent law across the European Union by creating a balanced framework to foster innovation within Member States. The proposed SEP Regulation’s key features included establishing a SEP register, a mechanism for SEP holders and implementers to request a recommendation on aggregate royalties, and a ‘Competence Centre’.

Opposition and Withdrawal

The proposed SEP Regulation has faced much controversy since its creation. Major SEP holders, including Nokia and Ericsson, along with several judges in the Unified Patent Court, opposed the European Commission’s proposal on various grounds. A key point of criticism was the suggestion that many issues would fall under the jurisdiction of the European Union Intellectual Property Office (EUIPO), an entity primarily focused on copyright and trademark matters.

In a move likely to be welcomed by SEP owners, the European Commission has conceded that the proposed SEP Regulation was unworkable, citing the reason for withdrawal as “no foreseeable agreement”. The next step will involve consideration of whether to propose a new regulation or adopt a different approach entirely.

For more information about the above topics, please contact Charleen O’Keeffe or your usual William Fry contact.

Contributed by Charleen O’Keeffe and Olivia Heron.