Tuesday, May 30 2023   \  Published by Kluwer Patent Blog.

FRAND Determination is Center Stage in EC Proposed Standard Essential Patents Regulation

FRAND Determination is Center Stage in EC Proposed Standard Essential Patents Regulation

The Standard Essential Patents (SEPs) Regulation Proposal also known as the IP Action Plan formally issued by the European Commission today suggests groundbreaking changes to the standard essential patent landscape as we know it.

The SEPs Regulation Proposal indicates the European Commission’s desire to establish four major requirements for SEPs holders and implementers. These are to be administered by a new “competence centre”, which is to be situated within the European Union Intellectual Property Office (EUIPO). The EUIPO is to (1) set up and maintain an electronic register and an electronic database for SEPs, (2) set up and administer a system for assessment of the essentiality of SEPs, (3) set up and administer the process for the FRAND determination and (4) administer a process for aggregate royalty determination. The proposal provides some important clarifications as to how this is to play out in practice.

SEPs holders may establish an aggregate royalty rate for the standard. This aggregate royalty rate is to be determined before the standard is adopted or – at the latest – 120 days after the standard development organization knows of a new implementation of the standard. Important to note is that such a valuation is not mandatory. Read more

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