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7 November 2017Patents

EU communication on SEPs comes in for criticism

IP Europe, an alliance of small and medium-sized companies originally co-founded by Ericsson, has announced its opposition to the European Commission’s current draft of the communication on standard-essential patents (SEPs).

In a statement, the group said that the ‘licence to all’ policy in the draft would significantly harm the European innovation sector and could precipitate a decline in European research and development if adopted.

In April, the Commission released a roadmap outlining plans for licensing of SEPs and invited feedback from stakeholders. The full guidance has not yet been published.

IP Europe stated that a new ‘licence to all’ approach is being prepared to replace the ‘access for all’ policy. This would mean all users of a technology within a device would have to take a licence.

“Under the tried and tested ‘access for all’ licensing system, app developers do not pay a penny and have never been asked to take a licence from the inventors of connectivity technologies as the equipment they use is licensed,” the statement explained.

“By contrast, an obligation to license to all or any actors in the value chain will expose these app companies to new financial demands, adding to the mandatory 30% tax on their sales revenue currently demanded by the monopoly owners of app platforms.”

Executive secretary of IP Europe Francisco Mingorance questioned why the Commission would want to “harm” innovators, and stated there is “no need” for the legislation.

“It seems extraordinary that the Commission would harm European innovators by imposing untested and damaging licensing requirements based on false assertions and partial information,” he stated.

“This calamitous reframing of the longstanding and well-balanced licensing system would fatally undermine Europe’s successful system of open standards,” he concluded.

Last month, WIPR reported that a bitter row over the licensing of SEPs in the ‘internet of things’ (IoT) was continuing ahead of the guidance from the Commission.

Trade body the App Association was worried that the Commission may extend use-based pricing—a practice currently used for licensing of smartphone technology—to the IoT.

But IP Europe, which was originally launched by Ericsson and Airbus, said it is a long-established and fundamental procedure in the area of fair, reasonable and non-discriminatory licensing.

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More on this story

Patents
19 October 2017   A bitter row over the licensing of standard-essential patents in the internet of things is continuing ahead of expected guidance from the European Commission.
Patents
28 June 2017   IP Europe, an alliance of innovation intensive companies, has launched a manifesto aimed at driving growth for European innovators, in anticipation of potential changes to IP rights enforcement.
Patents
9 November 2017   Trade body The App Association has responded to criticism of a ‘licence to all’ policy in the European Commission’s current draft of the communication on standard-essential patents.