EU Industry Commissioner Stéphane Séjourné has asked member states to agree among themselves on whether to support the Commission’s intention to ditch a proposal on standard essential patents (SEP).
The French commissioner for the internal market has said he wants to hear back from governments in the next three weeks.
Member states are divided about the way forward after the Commission said in February it intended to withdraw a plan on SEPs which it presented in 2023, arguing that it couldn't see an agreement being reached.
SEPs are patents that protect the technology deemed essential in a technical standard or specification and are used in the automotive, smart energy, and payment industry. Which means that if a company wants to make a product that complies with technical standards (such as 5G or wifi), it needs to use the technology covered by SEPs. Disputes over the value of SEPs licenses are proliferating as their use increases.
The Commission proposal intended to make the process of licensing SEPs more transparent, which was welcomed by patent lobby organisations who called for modernisation of the rules to make the bloc more competitive.
A group of eight countries – Czechia, France, Germany, Italy, Hungary, Latvia, Portugal, Slovakia and Spain – called for other EU member states to support continued work on the file during a meeting of industry ministers in Brussels on Thursday, arguing that the rules are crucial for industry. The Spanish representative said that SEPs will be beneficial for Europe’s automotive industry. Italy added that: “We need to ensure the value chains are resilient in the current geopolitical situation.”
Ireland, Finland and Sweden, by contrast, backed the Commission’s assessment that since no deal is within reach it should be dropped. The Swedish representative said that the proposal had created “major divisions in the business community”, adding that “any initiative in this field needs to encourage innovation and not create undue regulatory burden.”
Finland added that the decision to withdraw is in line with the Commission’s simplification plan. “We think there are fundamental problems in the proposal, they cannot be amended with this draft.”
European Parliament position
Séjourné told lawmakers of the European Parliament’s Legal Affairs (JURI) in April that the Commission scrapped the SEP proposal in a bid to reach a broader agreement on the topic.
Some argue however, that the incoming US administration and the EU Commission’s current strategy for deregulation killed the proposal.
While the majority of the member states do not see the need to continue with the topic, lawmakers want it kept on the table.
The proposed rules on SEPs were agreed by the Parliament in February 2024 - with 454 votes for, 83 against and 78 abstentions - before the Commission announced its intention to withdraw the file.
German MEP Bernd Lange (EPP), who chairs the heads of the Parliamentary committees, is expected to discuss the issue with Parliament President Roberta Metsola in June.
A letter signed by Lange and seen by Euronews, said that the Committee on Legal Affairs (JURI) – which is leading on the file – “objects, by a large majority, to the proposed withdrawal.”
“The proposal remains highly relevant due to its impact on competitiveness, transparency, and innovation, particularly for SMEs,” the letter said.
The Commission has until August to decide whether to go ahead with its intention to withdraw the plan.
