In the face of criticism from various patent holders, EU lawmakers have approved draft regulations governing patents crucial to technologies used in telecom equipment and connected cars.
The European Commission’s draft rules, proposed in April of last year, aim to end costly and time-consuming litigation over patents used in technologies for telecom equipment, mobile phones, computers, connected cars, and smart devices.
Before the proposed rules can become law, the European Parliament must first negotiate the details with EU member countries.
In a letter to EU lawmakers in January, Nokia, Ericsson, and Siemens raised concerns about the draft rules with the European Patent Office; standard-setting body, ETSI; and other organizations.
The lobbying group IP Europe, which includes Nokia, Ericsson, and Qualcomm, has reiterated its opposition to the draft rules.
“The beneficiaries [are] not SMEs as claimed, but rather big tech,” IP Europe’s managing director, Patrick McCutcheon, said ahead of the lawmakers’ vote.
Furthermore, this would, “reduce incentives to contribute to open standards, lead to the re-emergence of closed standards, slow down innovation, and reduce EU competitiveness, technology leadership and strategic autonomy,” he added.
The Fair Standards Alliance, which includes BMW, Volkswagen, Stellantis, Tesla, Toyota, Apple, Alphabet’s Google, and Amazon, praised the lawmakers’ vote.
A Call for Fair Patent Licensing
The vote “brings European companies one step closer to licensing standard essential technologies on fair, reasonable and non-discriminatory terms– which is unfortunately a far cry from reality today”, said Evelina Kurgonaite, secretary general of the Fair Standards Alliance.
The issue of fair patent licensing terms in the European market holds significant implications for innovation, competition, and consumer welfare. Unreasonable licensing fees and discriminatory practices can hinder innovation by limiting access to essential technologies and stifling investment in research and development. Additionally, such practices can distort competition, leading to monopolistic behavior and reduced choices for consumers, ultimately resulting in higher prices and lower quality products and services.
Ensuring fair patent licensing is essential for promoting a level playing field within the European market. By preventing anti-competitive practices and promoting transparency in licensing negotiations, policymakers can foster healthy competition and innovation. Effective regulation and enforcement mechanisms are needed to address these issues and provide companies with the necessary incentives to invest in innovation while safeguarding consumer interests.
