Charleen O'Keeffe

The proposed SEP Regulation was among 35 initiatives the European Commission said last week it will withdraw, citing “no foreseeable agreement”. Others include the AI Liability Directive and the ePrivacy Regulation.

The SEP Regulation’s key provisions included establishing a SEP register, a mechanism for SEP holders and implementers to request a recommendation on aggregate royalties, and a “competence centre”.

It was unveiled in April 2023 in response to concerns about a significant lack of transparency around SEPs.

It was proposed to promote the harmonisation of patent law across the European Union by creating a balanced framework to foster innovation within member states.

William Fry partner Charleen O’Keeffe said the proposed regulation had “faced much controversy since its creation”.

“Major SEP holders, including Nokia and Ericsson, along with several judges in the Unified Patent Court, opposed the European Commission’s proposal on various grounds,” she said.

“A key point of criticism was the suggestion that many issues would fall under the jurisdiction of the European Union Intellectual Property Office (EUIPO), an entity primarily focused on copyright and trademark matters.

“In a move likely to be welcomed by SEP owners, the European Commission has conceded that the proposed SEP Regulation was unworkable, citing the reason for withdrawal as ‘no foreseeable agreement’.

“The next step will involve consideration of whether to propose a new regulation or adopt a different approach entirely.”