Event Recap: The Evolving Landscape of Standard-Essential Patents: National and International Perspectives

 

On January 29, 2025, the Innovators Network Foundation (INF) in partnership with Competition Policy International (CPI) brought together leading experts to discuss the rapidly evolving world of standard-essential patents (SEPs). INF’s IP fellowship manager, Priya Nair, convened INF’s IP fellows to provide essential insights for policymakers and stakeholders at national, regional, and global levels. Here are the key highlights from this thought-provoking webinar.

National and Regional Developments in SEP Licensing

The first panel tackled the diverse approaches to SEP licensing disputes across major jurisdictions, including the United States, United Kingdom, and the European Union (EU).

  • Gail Levine, former FTC Deputy Director, highlighted the ongoing debate in the United States on whether enforcing FRAND (fair, reasonable, and non-discriminatory) commitments fosters or hinders competition. Levine emphasized the importance of maintaining a balance to support innovation and competition.
  • Enrico Bonadio, Professor of IP Law, discussed the EU’s proposed SEP Regulation, designed to balance the interests of patent owners and implementers while promoting innovation. He also mentioned how the regulation seeks to bring courts like the German courts and the Unified Patent Court (UPC) in line with EU competition considerations.
  • Jim Beveridge, INF Fellow, shared the evolving landscape in the UK and its growing importance in the global innovation economy. Beveridge noted that the current SEP disputes in the UK have overlooked the needs of small and medium-sized enterprises (SMEs), which face financial and technical constraints.
  • Christian Helmers, Professor of Economics, discussed the increasing volume of SEP disputes in developing markets like Brazil, India, and Colombia. He highlighted the role competition law plays in neutralizing potentially abusive conduct by SEP owners, noting the absence of strong competition frameworks in these regions.

A Global Perspective on SEP Licensing Challenges

The global panel expanded the discussion to the broader implications of jurisdictional approaches and SEP licensing behaviors worldwide.

  • Timothy Simcoe, Professor of Strategy and Innovation at Boston University, emphasized the need for greater transparency in the SEP ecosystem. He noted that uncertainties surrounding FRAND commitments, patent ownership, and licensing terms often lead to confusion and, at times, abuse by SEP holders.
  • Michael A. Carrier, Professor at Rutgers Law School, drew attention to the lack of clarity in FRAND definitions, which allows SEP holders to sidestep obligations. He also pointed out how patent pools, like Avanci, sometimes operate outside the FRAND system, further complicating the landscape.
  • Brian J. Love, Associate Professor at Santa Clara University, noted that secretive SEP licensing deals hinder market competition and regulatory oversight. He argued that greater transparency, particularly at the component level, would help foster market entry and healthier competition.

The panelists agreed that global issues surrounding SEP licensing need to be addressed in courts and through policy frameworks, like the EU’s proposed SEP Regulation, which is designed to tackle transparency issues at the systemic level.

Key Takeaways and Recommendations

The event underscored the ongoing tensions between patent rights and competition in the SEP world. While courts often struggle to find the right balance, there was consensus that transparency and clearer definitions of FRAND commitments are critical to a fair and competitive licensing ecosystem. The panelists offered several key recommendations for policymakers and regulators:

  • Strengthen competition law to address abusive practices in SEP licensing.
  • Enhance transparency in SEP licensing terms to provide clearer insights into market conditions.
  • Encourage international cooperation to create more consistent and equitable frameworks for SEP dispute resolution.

Conclusion: Leading the Way Forward

The Innovators Network Foundation continues to play a pivotal role in guiding the SEP discussion, bringing together top academic minds to inform and influence policy. If you missed the livestream, don’t worry! You can catch the full recording of the event here and dive into the critical insights shared by our experts.

For more information or to reach out to the INF team, contact Priya Nair at pnair@innovatorsnetwork.org.