The Legal Affairs Committee adopted on Wednesday, with 13 votes in favor, no votes against and 10 abstentions, its position on the new rules aimed at supporting so-called standard-essential patents (SEP). These patents protect cutting-edge technologies, such as Wi-Fi or 5G, which are essential to a technical standard, meaning that no Internet of Things (IoT) product, for example, can be developed without using them. They also play a key role in the development of connected vehicles, smart cities and technologies to mitigate climate change.
The aim is to encourage SEP holders and implementers to innovate in the EU and create products based on the latest standardized technologies that will benefit businesses and consumers.
Focus on small businesses
MEPs want to instruct the European Union Intellectual Property Office (EUIPO) to create an SEP Licensing Support Center as a one-stop shop to provide free training and support to small and medium-sized enterprises (SMEs) and start-ups. The EUIPO should also help small businesses identify the standard essential patent they will need to use and therefore pay for when developing their products and determine the best way to assert their rights, including how to get paid if they hold such a patent.
EUIPO Competence Center
MEPs agreed to give the EUIPO new powers to help reduce litigation and increase transparency. The EUIPO will create a register of holders of standard-essential patents, verify which patents are actually essential to a particular standard, what is the fair payment for the use of such a patent and provide assistance in related negotiations between the businesses. The EUIPO should also create an electronic database containing detailed information on the conditions of SEPs for registered users, including academic institutions.
The EUIPO competence center would also train SEP evaluators and conciliators acting as mediators between parties and establish lists of European candidates for these positions. MPs added provisions to ensure these candidates have the necessary qualifications and are impartial. The competence center would further cooperate with national and international patent offices as well as third country authorities dealing with SEPs to obtain information on rules related to SEPs outside the EU.
Citation
Following the vote in committee, rapporteur Marion Walsmann (EPP, DE) said: “The new instruments will bring much-needed transparency to an opaque system, make negotiations fairer and more efficient and strengthen European technological sovereignty. For example, in 5G, almost 85% of standard essential patents are actually non-essential. The new essentiality test will put an end to the occurrence of excessive reporting and strengthen the position of EU SEP holders in global markets. SEP holders will also benefit from an increased number of licenses, faster agreements, more predictable returns and reduced risk of litigation. Those responsible for implementing the SEP, 85% of whom are small and medium-sized enterprises, will benefit from legal and financial predictability.
Next steps
The agreed text must be adopted by the full Parliament before negotiations with EU countries on the final form of the legislation can begin.
Background
The current SEP market is fragmented because there is no organization responsible for informing companies about who owns which key patents and how much they charge for their use. This makes it difficult for companies to develop new devices using the technologies covered by these patents. The Commission has proposed a new regulation on standard essential patents in April 2023 as part of the ‘EU Patent Package’. The proposal responds to Parliament’s resolution of November 11, 2021 where MPs called for a strong, balanced and robust intellectual property system.
Lien source
Originally published in The European Times.
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