European Commission seeks applications for SEP group
The European Commission today announced it has set up a group to consider the licensing and valuation of standard-essential patents (SEPs).
The SEP group has been created in efforts to “deepen the expertise on evolving industry practices related to the licensing of SEPs in the context of the digitalisation of the economy”, the Commission said.
Other aims of the SEP group are to ensure the “sound valuation of IP” and better understand the realm of FRAND (fair, reasonable, and non-discriminatory) licensing terms.
The new group will be expected to provide the Commission with “economic, legal, and technical expertise” and to inform the agency of “any policy measures that may be required for enabling a balanced framework for smooth, efficient, and effective licensing of SEPs”.
The Commission is inviting those interested in membership of the SEP group to submit an application by August 20. Up to 15 members who have “substantial experience in licensing and/or valuation of SEPs” will be selected, and at least two thirds of them are to be individuals appointed in a personal capacity.
The announcement was welcomed by IP Europe, an alliance of innovation-intensive companies.
Francisco Mingorance, executive secretary for the group, said: “It makes sense for Europe to lead efforts to ensure the established system of FRAND licensing of SEPs remains fit for purpose. This is especially important as the licensing environment evolves and expands in the era of 5G and the internet of things.”
Mingorance has urged the Commission to ensure there is broad representation from leading innovators of wireless open standard technologies in the new group, in order to ensure discussions “reflect the dynamic nature of standardisation and the need for continued contribution of new technologies to standards”.
Organisations directly involved in licensing and/or valuation of SEPs may be granted “observer status” in the group, the Commission said, but they will not have voting rights.
Morgan Reed, executive director of The App Association, which represents more than 5,000 app companies and IT firms, said the SEP group represents the “next step towards creating a predictable and fair framework for SEP licensing”.
Reed added that, in parallel to the SEP group, The App Association and the Fair Standards Alliance are co-hosting a workshop with a range of stakeholders. The workshop will result in a code of conduct being published with the aim of making the SEP licensing process “smoother and less contentious”.
IP Europe started to develop a code of conduct on licensing SEPs during a CEN-CENELEC workshop last October, which is due to be completed soon.
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