Countering Criticisms to the Proposed EU SEPs Regulation

The European Commission’s proposed Regulation to regulate standard essential patents (SEPs) in the EU has been a subject of much debate. Its explanatory memorandum sets forth its aim, including to ensure that “end users” (which includes small businesses and EU consumers) derive advantage from products that incorporate SEPs, at reasonable prices. Specifically, the proposed Regulation is expected to increase transparency in SEPs licensing, decrease transaction costs, and ease SEP dispute resolution for both SEPs holders and implementers. As is known, its prominent features include a publicly available SEP register and an e-database that holds vast amounts of facts and numbers relating to SEPs, independent essentiality checks, and a compulsory, out-of-court procedure to determine FRAND terms and conditions before litigation can be initiated.

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