A group of MEPs have requested that the EC reconsiders its decision to drop the file, aligning with the interests of big tech firms in supporting the proposed regulation
The EC announced it was withdrawing the pending SEP regulation, alongside other controversial digital files
On 11 February 2025, the EC announced that it would withdraw its regulatory proposal on standard essential patents (SEPs), citing no foreseeable agreement on the file. The SEP regulation was listed among a number of other contentious digital files, including the AI Liability Directive and the e-Privacy Directive, that were listed as withdrawn in the EC’s 2025 work programme. The SEP regulation, which received approval from the European Parliament in February 2024, was largely stalled throughout the Hungarian presidency of the Council of the EU during H2 of that year. The Polish presidency was expected to pick up work to advance the file, having included the bloc’s broader patent package in its own programme for its six-month term that began in January 2025. Members of the European Parliament have also written to the EC requesting it to reconsider its “surprising and incomprehensible intention” to drop the draft regulation. MEP Tiemo Wölken went so far as to suggest the withdrawal of the SEP proposal was the result of a request made in a meeting between JD Vance (Vice President, US) and Ursula von der Leyen (President, EC), although the EC has denied this. The EC has stated it will consider the feedback from stakeholders, including lawmakers, before finalising its decision on withdrawing the regulation or pursuing an alternate approach towards a unified SEP framework.
Supporters of the decision deemed it a positive step in the bloc’s commitment to limit regulatory burdens
Similar to the debate throughout the lifecycle of the file, the announcement of the SEP regulation’s withdrawal was met with mixed reaction. Major SEP holders, including Ericsson, Nokia and Qualcomm, all supported the withdrawal of the regulation, citing concerns that moving forward with the licensing framework would have disincentivised research and development investment and disadvantaged the EU in its aims for leadership and innovation in 5G and 6G. Throughout the consultation process on the regulation, SEP holders argued that the conditions proposed on fair, reasonable and non-discriminatory (FRAND) assessments, including mandatory participation with non-binding outcomes and completion within nine months, would function as a temporary but costly restriction on IP holders’ ability to enforce their rights. The proposal for essentiality checks on SEPs as well as the calculation of aggregate royalty (maximum amount of royalty for all patents essential to a standard) were described as added regulatory burden that would create additional costs for rights holders of all sizes and potentially devalue IP, which would combine to act as a barrier to future innovation. In discussing the withdrawal of the regulation, Steven Bartholomew (VP for Communications and Marketing, Nokia) stated the EC’s “willingness to rethink its approach on this important topic is a positive step” and Nokia remains ready to engage on the common goal of “more transparent and efficient licensing of SEPs”.
Criticism of the EC’s move also claimed that European innovation, especially that driven by SMEs, would suffer as result
Unsurprisingly, a number of SEP licensees, also referred to as implementers, and related stakeholders criticised the decision to withdraw the regulation, citing a perceived negative impact on innovation and EU competitiveness of failing to adopt the framework. The Fair Standards Alliance – which counts Apple, Google, Microsoft and Deutsche Telekom among its members – stated that the decision to withdraw the regulation would hinder European competitiveness by limiting access to essential infrastructure such as 5G, and would result in deepened strategic dependency. The App Association, which represents small and medium tech firms, described the decision as an “unprecedented mistake” that would harm the SMEs which “drive innovation” in the EU. Opponents of the SEP regulation, however, have characterised the proposal as being uniquely suited to the interests of big tech firms, as opposed to SMEs, in a global push to devalue IP in markets complementary to their own. With these dynamics in mind, the EC has stated it will finalise its ongoing approach to balancing the interests of rights holders and implementors within the next six months, including with a final decision on the SEP file.
