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21 January 2020PatentsRory O'Neill

IP Europe chief denounces ‘patent troll myth’

The head of a corporate alliance that includes Nokia and Ericsson has urged the EU to beware the so-called ‘patent troll myth’, which he said has “little basis in fact”.

In a letter to The Financial Times, published today, January 21, IP Europe executive secretary Francisco Mingorance said that the narrative of abusive litigation by ‘patent trolls’ was a “calculated attempt to create a false rationale for weakening the patent protections of technology innovators in Europe”.

Mingorance’s letter came in response to a call by tech and auto companies including Microsoft, Volkswagen, Apple, and BMW for the EU to crack down on so-called ‘patent trolls’.

Last week, the tech and auto companies wrote to the new commissioner for the internal market, Thierry Breton, urging the EU to block courts from issuing automatic patent injunctions.

“Automatic injunctions make Europe more and more attractive to patent assertion entities, also known as ‘patent trolls’,” the letter to the commissioner said.

But according to Mingorance, the likes of Apple and Microsoft are “engaged in a campaign to change the licensing norms governing their access to the patented technologies underpinning cellular communications standards like 4G and 5G”.

“It could be argued that the true motivation for these claims is an attempt to reduce licensing costs,” he wrote.

IP Europe represents leading cellular standard-essential patent (SEP) owners including Nokia, Ericsson, and Orange.

Standard-essential patents

The debate over ‘patent trolls’ and excessive injunctions being granted to patent owners occurs against the backdrop of a wider clash over access to SEPs in the tech and auto industries.

As devices and vehicles become increasingly interconnected, access to telecommunications SEPs has become crucial.

The new generation of cars and mobile devices rely on advances in cellular technology, which are patent-protected.

SEP owners have sought to ensure that their patent rights are respected. But the companies implementing these technologies in their products have often argued that they are unable to license the patents on fair terms.

One such case is that of Nokia and Daimler.

Last month, Daimler agreed to enter mediation with Nokia after the Finnish telecoms company suspended its SEP infringement lawsuit against the carmaker.

Daimler is also a member of the IP2Innovate organisation, which signed the letter urging the commission to take action against patent trolls.

Nokia claims Daimler and its suppliers have infringed its SEPs, while the auto companies have accused Nokia of failing to license its patents on fair and reasonable terms.

Many of the signatories of the Breton letter, including Daimler, BMW and Apple, had previously written to the Commission over the growing power of SEP owners.

They urged the Commission to step in and protect competition, and stop SEPs from “stifling” innovation.

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