European businesses sign up to develop SEP licensing practices
More than 50 European signatories have joined an initiative to produce an industry-wide opinion on the best licensing practices for standard-essential patents (SEPs).
Signatories represent 35 major businesses in the European technology, automotive and engineering sectors, with the remainder representing a selection of smaller innovative firms.
The signatories will take part in a series of workshops overseen by Cen-Cenelec. The first workshop will take place this month.
The workshop, which was proposed by trade body The App Association ( ACT) and Belgium-based Fair Standards Alliance ( FSA), was created following the European Commission’s publication of policy guidelines on SEP licensing in November last year.
“The Commission considers that the parties are best placed to arrive at a common understanding of what are fair licensing conditions and fair rates, through good-faith negotiations,” the communication read.
The Commission added that it is necessary and beneficial to establish “a first set of key signposts on the fair, reasonable and non-discriminatory licensing (FRAND) concept, so as to provide for a more stable licensing environment, guide parties in their negotiations and reduce litigation”.
SEPs make up a key component of the internet of things (IoT)—a network of computing devices embedded in everyday objects that send and receive data, such as smart fridges and smart watches.
Morgan Reed, president of ACT, said that the Commission’s communication on the topic demonstrates the importance of technologies protected by SEPs in developing IoT innovations.
“The quality and breadth of the participations in the workshop will help provide a genuine industry-wide point of view and foundation for FRAND licensing,” said Reed.
The workshop will aim to develop guidelines in line with the Commission’s policy proposals.
It will seek to address legal and competition issues that may arise during the SEP licensing process; examine the potential impact the Commission’s guidance has on small to medium enterprises (SMEs); and provide guidance on how SEPs can be licensed using FRAND approaches.
Robert Pocknell, FSA chairman, said that the project has got off to a “flying start” and encouraged more SMEs working with IoT technologies to get involved.
Pocknell said: “We believe that the forum offers a real opportunity for the broader industry to identify industry best practices for open and transparent SEP licensing that will unlock the true potential of the IoT for Europe and the world.”
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