Mediaroom

The European Parliament voted today in Plenary on its position regarding the standard essential patents (SEP) regulation. This vote marks a significant step forward towards providing fair conditions for accessing essential standardised technologies, helping to safeguard a competitive European auto industry.  

Automotive suppliers in the EU invest €30 billion annually in R&D, paving the way for European leadership in areas such as eMobility, connectivity, and automation. An increasing number of these innovations rely on patented technologies that have become anchored in a standard, for example, to ensure the interoperability of devices. Therefore, automotive supply companies require a governance system that ensures that SEPs are licensed on truly “fair, reasonable and non-discriminatory terms” (FRAND-principle).   

The agreement in the Parliament ensures a solid legal framework, accessible, fair, reasonable, and non-discriminatory license for innovators. An EU-level regulation provides a better balance between the interests of SEP owners and those of implementers of standardised technology, and to limit unfair SEP licensing practices. 

A balanced system of licensing for the use of standards will motivate SEP holders and implementers to engage in good faith negotiations. The regulation secures certainty and predictability to reliably invest in the development of new technologies using new standards for companies in the automotive supply industry. 

CLEPA Secretary General, Benjamin Krieger states: 

“Automotive suppliers invest, innovate, build and market next-generation products advancing the future of mobility. In fact, automotive suppliers register over 39,000 patents each year. The proposed regulation on essential patents adapts to the digital transformation in the mobility ecosystem and will ensure an efficient pathway to prevent monopolies and safeguard fair competition.” 

CLEPA calls on member states to swiftly adopt their general approach, so that inter-institutional negotiations can begin promptly to ensure that fairness prevails in the EU.