How typically have we heard concerning the significance of innovation for firms in Europe to remain aggressive? Effectively, now we now have an opportunity to make an actual distinction to assist European trade develop new, progressive sensible and sustainable services and products.
What’s at stake is the little-known however vastly essential concern of licensing of so-called customary important patents (SEPs). These are the patents that giant and small companies depend on to make use of technical requirements for applied sciences similar to wifi, 5G or bluetooth. Innovators use these applied sciences to make TVs sensible and automobiles linked. Requirements allow quite a few progressive gadgets to interoperate with one another.
Innovators use these applied sciences to make TVs sensible and automobiles linked.
As one of many largest suppliers for automotive electronics, we at Continental know there is a gigantic potential for extra local weather safety, fewer accidents, autonomous driving and rather more. However to be able to obtain this, firms want greater than their very own progressive power. Anybody who desires to develop networked purposes wants truthful entry to standardized know-how. In follow, they want direct licenses on truthful phrases or the choice to buy parts from suppliers licensed for standardized applied sciences similar to 4G, 5G and, sooner or later, 6G, and likewise wifi, ethernet, and different requirements. This impacts not solely the automotive trade, however all producers of linked items and purposes for the web of issues (IoT). This ranges from linked autos and sensible meters to complete cities with clever buildings and visitors monitoring, to call only a few examples.
There is a gigantic potential for extra local weather safety, fewer accidents, autonomous driving and rather more.
In principle, European trade ought to have the ability to use standardized applied sciences by getting licenses on truthful, affordable and nondiscriminatory (FRAND) phrases — that is what SEP holders have promised. Sadly, there are SEP holders that don’t honor this FRAND promise any extra. As an alternative, leveraging the specter of market exclusion — sometimes, by invoking simply out there injunctions in German patent courts — they impose license phrases on requirements customers which might be neither truthful, nor affordable. The present licensing atmosphere offers progressive firms in Europe little selection however to simply accept SEP licensing phrases regardless of how unfair, an issue confronted by automobile producers.
Many patents for standardized applied sciences similar to 5G are held by overseas firms. Because of this it’s these overseas firms that profit from the unfairly enforced and extreme license charges. For instance, information reveals that over €1 billion flowed from standardized know-how licensees in Germany and France into the arms of overseas holders of SEPs in 2022. These figures are anticipated to extend considerably within the close to future.
The European Fee’s proposed regulation on licensing of SEPs is lengthy overdue. It’s a wise and balanced bid at making Europe’s know-how licensing system extra environment friendly. The primary adjustments embody giving a job to the EU Mental Property Workplace (EUIPO) as a central hub for info on SEPs. SEP holders should register their patents with the EUIPO, and the workplace will advise and assist facilitate the discovering of mixture royalties and FRAND phrases and circumstances. It will convey much-needed transparency to the market. There may even be a process for out-of-court settlements of licensing disputes, which is able to save firms — particularly small companies — from main prices concerned in litigating to acquire the SEPs licenses they want.
It’s a wise and balanced bid at making Europe’s know-how licensing system extra environment friendly.
We hear those that profit from the established order claiming that the Fee’s proposal will destroy a well-functioning system, result in all types of bottlenecks within the SEP licensing course of and extra, not much less, pricey litigation. In distinction, we admire the Fee’s proposal is a modest intervention within the at present highly-unbalanced and inefficient system that will facilitate good religion negotiation on an equal footing with vital info moderately than litigation. The Fee’s proposal merely seeks to extend transparency and predictability.
European customers stand to profit from an improved SEP licensing system that may assist convey new applied sciences to market quicker, by making it simpler for firms to achieve the truthful entry to the SEPs they should develop progressive services and products. European firms will profit from simpler entry to SEPs on FRAND phrases in order that they are often utilized throughout an ever-widening vary of services and products.
For the sake of all those that stand to profit from improved SEP licensing, customers and the overwhelming majority of European firms, we ask the members of the European Parliament to assist the Fee’s proposal for a regulation. This can be a vote for equity and transparency in Europe.
Gilles Mabire is the chief know-how officer of automotive applied sciences at Continental