A rate determination track within the Intellectual Property Enterprise Court is among proposals published today to tackle what the government calls ‘systemic issues’ around the handling of so-called standard-essential patents. The new process would ensure fair licensing terms for innovators seeking access to intellectual property deemed essential for supporting a technical standard, such as in mobile telephony.
According to an Intellectual Property Office (IPO) consultation opened today, the proposed reforms are necessary to tackle ‘systemic issues’ in the handling of standard-essential patents. These include a lack of information about what IP is classified as standard-essential and the imbalance of power between patent holders and licensees.
A SEP is a patent wich protects an innovation essential to implementing a technical standard, for example those which allow a headset from one manufacturer to communicate with a phone handset from another. They are crucial flor the creation of an ‘internet of things’ as well as an electric vehicle infrastructure. Patents declared essential to a standard are generally made aware under ‘fair, reasonable and on-discriminatiory (FRAND)’ licence terms.
The consultation document says that the government has identified several problems with the process. One is the cost of litigation: the 2023 FRAND case Interdigital v Lenovo, for example, ran up legal costs of some £31.5 million. Another is the lack of transparency around SEPs. The IPO proposes:
- To introduce a specialist track to provide licence rates for SEP portfolios case-by-case. ‘This could increase consistency and transparency in SEP pricing. It could give businesses of all sizes a more efficient and cost-effective route to obtain a SEP licence rate,’ the document states.
- Requiring patent holders to disclose standard-related patent information to the IPO. ‘This would help address the current lack of transparency around SEPs and licencing obligations’.
The IPO is also seeking evidence on pre-action protocols to establish if they work well in SEP negotiations by encouraging early disclosure.
Intellectual property minister Feryal Clark MP said: ‘Intellectual property is central to the government’s growth mission and underpins the technologies that power our connected future, from 5G and electric vehicles to smart manufacturing and healthcare. This consultation will help make the licensing of these technologies more straight forward and accessible – driving innovation, reducing costly litigation, and helping UK firms lead in developing the technologies of tomorrow.’
The consultation is open until 7 October 2025.
