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CLEPA, the European Association of Automotive Suppliers, welcomes the European Commission’s proposal for a balanced and fair system of licensing for the use of standard essential patents (SEPs). The automotive industry invests €30 billion annually in research, innovation and marketing of solutions that support the green and digital transition of mobility. For these investments, companies require certainty and predictability to continue to advance towards a more sustainable and digital future. In this regard, the licensing of standard essential patents for electronic and digital innovation plays an important role. Unfortunately, current licensing practices lack transparency and reliability, resulting in lengthy and costly litigation that can potentially hinder innovation.

“The proposed regulation promises to enhance transparency and level the playing field for patent holders and users. This will result in significant improvements to the current situation,” says Benjamin Krieger, CLEPA Secretary General.

It is specifically important that the proposal prioritises transparency, negotiations, and third-party determination before injunctions for SEPs. Making FRAND determination a legal obligation prior to any patent infringement or assertion procedure, will significantly reduce lengthy and expensive litigation. Any willing licensee, regardless of their position in the value chain, must be able to obtain a FRAND license. Only by making both provisions legally binding do we expect a significantly positive impact.

CLEPA’s Senior Manager for Legal Affairs, Mariola Hauke, states “In order to boost innovation and succeed in the mobility transition, automotive suppliers need a solid legal framework that ensures fair competition and allows a design-around approach where it enriches technology for the benefit of all.”

With the aim to provide insight into the specificities of the automotive supply patent ecosystem, CLEPA published comprehensive policy guidelines earlier this year: