Commission targets SEP litigation in auto sector
The European Commission has promised to “reduce frictions” and bring down the level of litigation surrounding standard-essential patent (SEP) licensing in the auto industry.
The EU executive could also issue further guidelines to clarify the rules on SEP licensing and enforcement. The commitments came in the Commission’s long-awaited “IP Action Plan”, published yesterday, November 25.
“Although currently the biggest disputes seem to occur in the automotive sector, they may extend further as SEP licensing is relevant also in the health, energy, smart manufacturing, digital and electronics ecosystems,” the document said.
“In the short term, the Commission will facilitate industry-led initiatives to reduce frictions and litigations among players in specific sectors,” it continued.
The document raises the prospect of the Commission taking a targeted approach towards SEP disputes in certain sectors, such as automotive. A leaked draft of the plan circulated earlier this week had more strongly highlighted the problems in that sector.
The disputes in the auto industry have seen telecommunication SEP owners in court against car-makers over the licenses needed for technology used in connected cars.
IP2Innovate, a coalition including auto manufacturers Daimler and BMW, said the Action Plan didn’t go far enough in tackling “continuing abuses of the patent system”.
“Monitoring is not enough,” said IP2Innovate executive director Patrick Oliver, adding: “The Commission needs to provide Member States with clearer guidance on how to apply the proportionality requirement set out in EU law.”
“Failure to do so encourages patent holders in a negotiation over a disputed infringement claim to make disproportionate demands based on the damage that would result from an injunction rather than the value contributed by the patent,” Oliver argued.
ACT | The App Association, meanwhile, which represents a group of app developers, warned against the Commission’s proposed sector-by-sector approach to dealing with problems in SEP licensing.
“We urge the Commission to include all stakeholders, especially SMEs, in any industry-led approach to reduce disputes and litigations, regardless of the sector,” said ACT founder Mike Sax.
“A sector-by-sector approach to negotiations would implicitly capture use-based licensing methods and would result in further fragmentation of the internet of things (IoT) to the detriment of the European Single Market and digital sovereignty,” Sax added.
This morning, November 26, the Düsseldorf Regional Court referred a long-running SEP dispute between SEP owner Nokia and German carmaker Daimler to the Court of Justice of the European Union (CJEU).
The resulting decision from the CJEU could clarify outstanding issues in the argument between SEP owners and implementers, including which level of the supply chain should have to take a licence to the IP.
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories sent like this straight to your inbox
Today’s top stories
UKIPO rejects Tefal’s figurative ‘red dot’ TM bid
Xerox unit sues Facebook, Twitter over COVID-19 fakes identifier
