Patent Experts from Analysis Group Examine Proposed Competence Center for Standard Essential Patents (SEPs) in Europe

June 6, 2023

In “Global Issues In EU's Licensing Plans For Essential Patents,” published on Law360.com, Senior Advisor Eliana Garces, Vice President Josh White, and Managing Principal John Jarosz discuss the European Commission’s (EC’s) regulatory proposal to establish a competence center for registering and assessing standard essential patents (SEPs). According to the authors, the proposed regulation, released in April 2023, is intended to “facilitate the licensing of SEPs in the EU, with the hope of greatly reducing the costs and uncertainties associated with the growing volume of SEP litigation.”

Acknowledging that the EC “aims to shift SEP licensing from a somewhat inconsistent and secret set of bilateral negotiations to one that is open and governed by a central body that will apply understandable and predictable guideposts,” the authors examine elements of the proposal that they believe may pose challenges the EC will need to address as it moves forward. They raise questions regarding the European Union Intellectual Property Office’s (EUIPO’s) lack of experience with patent licensing and technology standards; the principles and time frame being proposed for making FRAND determinations; and the willingness of patent holders to submit to a registration and FRAND conciliation process that would release large amounts of information in the public domain.

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